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Find the accumulated amount of a deposit of Rs 500 at the end of each month for 4 years and 3 months compounded monthly at 10%.

A) Rs 24,000
B) Rs 27,600
C) Rs 25,800
D) Rs 28,000

User ParkerD
by
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1 Answer

3 votes

Final answer:

The accumulated amount of a deposit of Rs 500 at the end of each month for 4 years and 3 months compounded monthly at 10% is approximately Rs 27,591.12.

Step-by-step explanation:

To find the accumulated amount of a deposit of Rs 500 at the end of each month compounded monthly at 10%, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:

  • A is the accumulated amount
  • P is the principal amount (initial deposit)
  • r is the annual interest rate (in decimal form)
  • n is the number of times the interest is compounded per year
  • t is the number of years

In this case, P = Rs 500, r = 10/100 = 0.1, n = 12 (compounded monthly), and t = 4 years and 3 months = 4 + 3/12 = 4.25 years.

Plugging in these values into the formula:

A = 500(1 + 0.1/12)^(12*4.25)

A ≈ Rs 27,591.12

Therefore, the accumulated amount at the end of 4 years and 3 months is approximately Rs 27,591.12.

User Christophe L
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