Anil opened a recurring deposit account in a bank and deposited Rs. 300 per month for 2 years. If he received Rs. 7, 740 at the time of maturity, find the rate of interest p.a.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	7%
B	8%
C	7.2%
D	8.2%

Explanation:

Detailed explanation-1: -Hence Matured value =Rs. 40440.

Detailed explanation-2: -Rs. 150 for 8 months is 150×8=1200. Therefore, the maturity value Amit will have at the end of 8 months is Rs. 1236.

Detailed explanation-3: -The correct option is B Mrs. Goswami deposits Rs 1000 every month in a recurring deposit account for 3 years at 8% interest per annum.

Detailed explanation-4: -A recurring deposit account enables an individual to deposit a fixed amount every month for a pre-defined period. This helps to earn an interest similar to that in the Fixed Deposits (FD). For this, the minimum amount and tenure are fixed by the bank. The interest on RD is compounded on a quarterly basis.

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