MCQ

MCQ 11 Mark

John deposited Rs 400 every month in a bank's recurring deposit account for $2 \frac{1}{2}$ years. If he gets Rs 1085 as interest at the time of maturity, then the rate of interest per annum is

A
6%
✓
7%
C
8%
D
9%

Answer

Correct option: B.

Deposit $(P)=$ Rs400 per month
Period $(n)=2 \frac{1}{2}$ years $=3$ months
Interest $=$ Rs1085
Let $r \%$ be the rate of interest
$\therefore$ Interest
$
\begin{aligned}
& =\frac{ P \times n \times( n +1)}{2 \times 12} \times \frac{ r }{100} \\
& 1085=\text { ₹ } \frac{400 \times 30 \times 31 \times r }{2 \times 12 \times 100} \\
& 1085=155 r \\
& \Rightarrow r =\frac{1085}{155}=7
\end{aligned}
$
$\therefore$ Rate $7 \%$ p.a.

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MCQ 21 Mark

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
₹ 875
B
₹ 6875
C
₹ 10875
✓
₹ 12875

Answer

Correct option: D.

₹ 12875

$\text { Deposit }(P)=\text { Rs } 500 \text { per month } \\ \text { Period }(n)=2 \text { years }=24 \text { months } \\ \text { Rate }(r)=7 \% \text { p.a. } \\ \therefore \text { Interest } \\ =\frac{P \times n \times(n+1)}{2 \times 12} \times \frac{r}{100} \\ =\frac{500 \times 24 \times 25 \times 7}{2 \times 12 \times 100} \\ =\text { ₹ } 875 \\ \therefore \text { Maturity value } \\ =P \times 24+\text { Interest } \\ =\text { ₹ } 500 \times 24+875 \\ =\text { ₹ } 12000 \times 875 \\ =\text { ₹ } 12875 .$

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MCQ 31 Mark

Mrs. Asha Mehta deposit Rs 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

A
₹ 65
B
₹ 120
✓
₹ 130
D
₹ 260

Answer

Correct option: C.

₹ 130

$\begin{aligned} & \text { Deposit per month }(P)=\text { Rs } 250 \\ & \text { Period }(n)=1 \text { year }=12 \text { months } \\ & \text { Rate }(r)=8 \% \text { p.a. } \\ & \therefore \text { Interest } \\ & =\frac{P \times n \times(n+1)}{2 \times 12} \times \frac{r}{100} \\ & =\frac{250 \times 12+13}{2 \times 12} \\ & =\text { ₹ } 130 .\end{aligned}$

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MCQ 41 Mark

If Sharukh opened a recurring deposit account in a bank and deposited Rs 800 per month for years, then the total money deposited in the account is

A
₹ 11400
✓
₹ 14400
C
₹ 13680
D
none of these

Answer

Correct option: B.

₹ 14400

$\begin{aligned} & \text { Monthly deposit }=\text { Rs } 800 \\ & \text { Period }(n) \\ & =1 \frac{1}{2} \text { years } \\ & =18 \text { months } \\ & \therefore \text { Total money deposit } \\ & =\text { Rs } 800 \times 18 \\ & =\text { Rs } 14400 .\end{aligned}$

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