Question

Shankar deposited 300 per month in a bank for 8 months in a recurring deposit account. If the rate of interest is 8% p.a., the maturity value of his deposit is ______.

Options

• ₹ 2484

• ₹ 2532

• ₹ 2416

• ₹ 2472

Answer 1

Shankar deposited ₹ 300 per month in a bank for 8 months in a recurring deposit account. If the rate of interest is 8% p.a., the maturity value of his deposit is ₹ 2472.

Explanation:

Given:

Monthly deposit, P = ₹ 300

Time, n = 8 months

Rate of interest, r = 8% per annum

Total amount deposited:

P ⋅ n

= 300 ⋅ 8

= ₹ 2400

Interest calculation:

`I = (Pxxn(n+1)xxr)/(2xx12.100)`

`= (300xx8xx9xx8)/2400`

`= 172800/2400`

= ₹ 72

MV = ₹ 2400 + ₹72

= ₹ 2472