Mr. David deposited ₹ 100 per month in a cumulative deposit account for 1 year at the rate of 6% p.a.
Statement 1: Qualifying sum of his whole deposit = ₹ 7,800.
Statement 2: Let a sum ₹ P be deposited every month in a bank for n months. If the rate of interest be r% p.a., then interest on the whole deposit = $P \times \dfrac{n(n + 1)}{12} \times \dfrac{r}{100}$ .
Both the statements are true.
Both the statements are false.
Statement 1 is true, and statement 2 is false.
Statement 1 is false, and statement 2 is true.

Question

Mr. David deposited ₹ 100 per month in a cumulative deposit account for 1 year at the rate of 6% p.a.

Statement 1: Qualifying sum of his whole deposit = ₹ 7,800.

Statement 2: Let a sum ₹ P be deposited every month in a bank for n months. If the rate of interest be r% p.a., then interest on the whole deposit = $P \times \dfrac{n(n + 1)}{12} \times \dfrac{r}{100}$ .

Both the statements are true.
Both the statements are false.
Statement 1 is true, and statement 2 is false.
Statement 1 is false, and statement 2 is true.

KnowledgeBoat · Accepted Answer

Since, Mr. David deposits ₹ 100 per month in a recurring deposit account for 12 months, thus the amount deposited in first month will earn interest for 12 months, the amount deposited in second month will earn interest for 11 months and so on.

$\text{Qualifying sum }= ₹ 100 \times (12 + 11 + 10 + …….. + 1) \\[1em] = ₹ 100 \times \dfrac{12(12 + 1)}{2} \\[1em] = ₹ 100 \times 6 \times 13 \\[1em] = ₹ 7,800.$

∴ Statement 1 is true.

Let a sum ₹ P be deposited every month in a bank for n months. If the rate of interest be r% p.a., then interest on the whole deposit (I) = $P \times \dfrac{n(n + 1)}{2 \times 12} \times \dfrac{r}{100}$ .

∴ Statement 2 is false.

Hence, statement 1 is true, and statement 2 is false.

Mathematics

Banking

Answer

Related Questions

The maturity value of a R.D. Account is ₹3,320. If the monthly instalment is ₹400 and the rate of interest is 10%; find the time (period) of this R.D. Account.