Question

Sahil deposited Rs. 90 per month in a cumulative (recurring) deposit account for six years. The amount payable to him on maturity if the rate of interest is 8 % will be equal to ___.

• A. 8056.8
• B. 9056.8
• C. 7056.8
• D. 8096.8

Answer 1

The correct option is A

8056.8

Total money deposited = $P\times n$
= $90\times 6\times 12[\because 6years=6\times 12months]$
Interest = $\frac{P\times n(n+1)}{2\times 12}\times \frac{r}{100}$
= $\frac{90\times 72\times 73}{2\times 12}\times \frac{8}{100}=1576.80$
Amount payable to him on maturity
= Sum Deposited + Interest
= 6480+1576.80
= 8056.8