Mr. Sharma deposited Rs 500 every month in a cumulative deposit account for 2 years.

Mr. Sharma deposited Rs 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
(a) Rs 875
(b) Rs 6875
(c) Rs 10875
(d) Rs 12875

Solution:

Deposit (P) = Rs 500 per month
Period (n) = 2 years = 24 months
Rate (r) = 7% p.a.

John deposited Rs 400 every month in a bank’s recurring deposit account for years. If he gets Rs 1085 as interest at the time of maturity, then the rate of interest per annum is
(a) 6%
(b) 7%
(c) 8%
(d) 9%

Solution:

Deposit (P) = Rs 400 per month
Period (n) = years = 3 months
Interest = Rs 1085
Let r% be the rate of interest