Question

Suppose you deposit Rs. 900 per month into an account that pays 14.8% interest compounded monthly. How much money will you get after 9 months?

(a) Rs. 10,235.74
(b) Rs. 10,450.28
(c) Rs. 10,675.65
(d) Rs. 10,912.89

Answer 1

To calculate the total amount of money you will have after 9 months with a monthly deposit of Rs. 900 and an interest rate of 14.8% compounded monthly, you can use the formula for compound interest.

Step-by-step explanation:

To calculate the total amount of money you will have after 9 months with a monthly deposit of Rs. 900 and an interest rate of 14.8% compounded monthly, you can use the formula for compound interest:

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

Where:

• A is the total amount of money you will have after the specified time period
• 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, the principal amount is Rs. 900, the annual interest rate is 14.8% (or 0.148 in decimal form), the number of times interest is compounded per year is 12 (monthly), and the number of years is 9/12 = 0.75.

Substituting these values into the formula, we calculate:

A = 900 (1 + 0.148/12)^(12 * 0.75) = 1128.78

Therefore, the amount of money you will have after 9 months is Rs. 1128.78.