Question

Mrs Mathew opened a Recurring Deposit Account in a certain bank and deposited 640 per month for 4.5 years. Find the maturity value of this account, if the bank pays interest at the rate of 12% per year.

• A. Rs 44,064
• B. Rs 34,560
• C. Rs 9,504
• D. None of these

Answer 1

The correct option is A Rs 44,064

Installment per month(P) = Rs640

Number of months(n) = 54

Rate of interest(r)= 12%p.a.

$S.I.=P\times \frac{n(n+1)}{2\times 12}\times \frac{r}{100}$
$=640\times \frac{54(54+1)}{2\times 12}\times \frac{12}{100}$
$=640\times \frac{2970}{24}\times \frac{12}{100}=Rs9504$

The amount that Manish will get at the time of maturity

=Rs(640x54)+ Rs9,504

=Rs34,560+ Rs9,504

= Rs44,064