Question

Priya has a recurring deposit in a bank at $10\%$ per annum simple interest. If she pay monthly installment s Rs.$700$ for annually. Find her Maturity value.

• A. $2034.904$
• B. $2134.904$
• C. $3134.904$
• D. $4134.904$

Answer 1

Answer: (B)

$2134.904$

Using the formula,
$M=\frac{R\times \left[\right(1+i{)}^n-1]}{1-(1+i{)}^{\frac{-1}{3}}}$
$R=$ Monthly Installment $=700$
$i=$ Rate of Interest/ 400 $=\frac{10}{400}$
$n=$ Number of Quarters $=1$
Substitute the values,
$M=\frac{700\times \left[\right(1+10/400{)}^n-1]}{1-(1+12/400{)}^{\frac{-1}{3}}}$
$M=\frac{700\times \frac{10}{400}}{1-(\frac{410}{400}{)}^{-1/3}}$
$M=2134.904$