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Mathematics

Mr. Sharma deposited ₹500 every month in a cumulative deposit account for 2 years. If the bank pays interest at the rate of 7% per annum, then the amount he gets on maturity is

  1. ₹875
  2. ₹6875
  3. ₹10875
  4. ₹12875

Banking

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Answer

Here,
P = money deposited per month = ₹500,
n = number of months for which the money is deposited = 2 x 12 = 24,
r = simple interest rate percent per annum = 7

Using the formula:

I=P×n(n+1)2×12×r100, we getI=(500×24×252×12×7100) =₹875I = P \times \dfrac{n(n+1)}{2 \times 12} \times \dfrac{r}{100} \text{, we get} \\[0.7em] I = \Big( 500 \times \dfrac{24 \times 25}{2 \times 12} \times \dfrac{7}{100} \Big) \\[0.5em] \enspace\medspace = \text{₹875}

Using the formula:

MV=P×n+I, we getMV=(500×24)+875 =12000+875 =₹12875MV = P \times n + I \text{, we get} \ MV = (500 \times 24) + 875 \ \qquad\medspace = 12000 + 875 \ \qquad\medspace = \text{₹12875}

The amount Mr. Sharma will get at the time of maturity = ₹12875

∴ Option 4 is the correct option.

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