Question

Two friends Rajiv and Ankit opened a recurring deposit account. If rajiv deposited Rs. 2000 per month for 3 years & ankit deposited 1500 per month for 2 years, both having rate of interest 10%, Then, Interest paid by the bank to Rajiv is greater than the interest paid by the bank to ankit.

• A. True
• B. False

Answer 1

The correct option is A

True

For Rajiv
P = 2000
n = 3 years = 36 months
r = 10%
Interest = $\frac{P\times n(n+1)}{2\times 12}\times \frac{r}{100}$
Interest = $\frac{2000\times 36\left(37\right)}{2\times 12}\times \frac{10}{100}$
= Rs.11,100
For Ankit
P = 1500
n = 2 year = 24 months
r = 10%
Interest = $\frac{P\times n(n+1)}{2\times 12}\times \frac{10}{100}$

Interest = $\frac{1500\times 24\left(25\right)}{2\times 12}\times \frac{10}{100}$

= Rs. 3750

Hence, Interest paid by the bank to Rajiv is greater than the interest paid by the bank to ankit.