Question

Rohan deposited Rs. 150 per month in his bank for eight months under the Recurring Deposit Scheme. What will be the maturity value of his deposit, if the rate of interest is 8% per annum and the interest is calculated at the end of every month?

• A. Rs. 1236
• B. Rs. 1200
• C. Rs. 1179
• D. Rs. 1278

Answer 1

The correct option is A

Rs. 1236

Principal = ₹ 150 ; Number of Months = 8 ; Rate of interest = 8%

Total Money Deposited = ₹ 150 x 8 = 1200

Interest = P $\times$ $\frac{n\times (n+1)}{2\times 12}$ $\times$ $\frac{r}{100}$

= 150 $\times$ $\frac{8\times (8+1)}{2\times 12}$ $\times$ $\frac{8}{100}$

= ₹ 36

Maturity Amount = Total Money Deposited + Interest

= 1200 + 36

= ₹ 1236