Question

Naseem has a 5 year Recurring Deposit Account in Punjab National Bank and deposits Rs 240 per month into it. If she receives Rs 17694 at the time of maturity, what will be her rate of interest ?

• A. 9%
• B. 10%
• C. 6%
• D. 12%

Answer 1

The correct option is

C

9%

Given,

Time $T=5$years$=12\times 5=60$ months

So, $n=60$

Principal $P=240$per month​

Let $r$% be the rate of interest
Matured value $=P\times \frac{n(n+1)}{2\times 12}\times \frac{r}{100}+P\times n$

17694= $240\times \frac{60\times 61}{2\times 12}\times \frac{r}{100})+(240\times 60)$

$17694=14400+366r$

$366r=3294$

$\Rightarrow$$r=9$

Hence, rate of interest is 9%

Hence, correct answer is option (C).