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₹ 50 per month is deposited for 20 months in a recurring deposit account. If the rate of interest is 10%; the maturity value is ______. - Mathematics

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Question

₹ 50 per month is deposited for 20 months in a recurring deposit account. If the rate of interest is 10%; the maturity value is ______.

Options

  • ₹ 187.50

  • ₹ 87.50

  • ₹ 2,175

  • ₹ 1,087.50

MCQ
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Solution

₹ 50 per month is deposited for 20 months in a recurring deposit account. If the rate of interest is 10%; the maturity value is ₹ 1,087.50.

Explanation:

Given P = ₹ 50,

n = 20 months,

R = 10%

Since, `I = P xx (n(n xx 1))/(2 xx 12) xx R/100`

= `50 xx (20 xx 21)/(2 xx 12) xx 10/100`

= 87.50

∴ M.V. = Total sum deposited + Interest

= (50 × 20) + 87.50

= 1087.50

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