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Mathematics

Mrs. Asha Mehta deposit ₹250 per month for one year in a bank’s recurring deposit account. If the rate of (simple) interest is 8% per annum, then the interest earned by her on this account is

  1. ₹65
  2. ₹120
  3. ₹130
  4. ₹260

Banking

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Answer

Here,
P = money deposited per month = ₹250,
n = number of months for which the money is deposited = 1 x 12 = 12,
r = simple interest rate percent per annum = 8

Using the formula:

I=P×n(n+1)2×12×r100, we getI=(250×12×132×12×8100) =₹130I = P \times \dfrac{n(n+1)}{2 \times 12} \times \dfrac{r}{100} \text{, we get} \\[0.7em] I = \Big( 250 \times \dfrac{12 \times 13}{2 \times 12} \times \dfrac{8}{100} \Big) \\[0.5em] \enspace\medspace = \text{₹130}

Interest earned by Mrs. Asha Mehta = ₹130

∴ Option 3 is the correct option.

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