Question

A and B opened a recurring deposit account in a bank which is paying simple interest at 9% per annum. A deposited ₹ 1,500 for one year and B deposited ₹ 1,200 for 15 months. The amount invested by ______.

Options

• A is ₹ 27 more than B

• A is ₹ 300 more than B

• A is ₹ 300 less than B

• Both A and B are same (₹ 18,000)

Answer 1

A and B opened a recurring deposit account in a bank which is paying simple interest at 9% per annum. A deposited ₹ 1,500 for one year and B deposited ₹ 1,200 for 15 months. The amount invested by both A and B are same (₹ 18,000).

Explanation:

Given: For A,

P = ₹ 1,500

n = 12 months

r = 9%

Formula: Amount Invested = P × n

= ₹ 1,500 × 12

= ₹ 18,000.

For B,

Amount Invested = P × n

= ₹ 1,200 × 15

= ₹ 18,000.

Both invested ₹ 18,000.