Question

Rohit has a recurring deposit account in a bank for 3 years at the rate of 8 per annum. Find the maturity value of the account, if he gets 4995 as interest.

a. Rs. 61,875
b. Rs. 50,000
c. Rs. 56,000
d. Rs. 62,500

Answer 1

The maturity value of Rohit's recurring deposit account after three years at 8% per annum is a. Rs. 61,875.

The maturity value shows the amount the recurring deposit account has accumulated over the years through some monthly deposits.

The period of investment = 3 years = 36 months (3 x 12)

The interest rate = 8%

Accumulated interest = Rs. 4,995

Recurring deposits (monthly) = Rs. 1,580 [(Rs. 61,875 - Rs. 4,995) ÷ 36]

Thus, the recurring deposit account's maturity value is Option A.