Multiple choice

Seep has a $4$ year recurring deposit account in a bank and deposits Rs $1800$ per month. If she gets Rs $1,08 ,450$ at the time of maturity , find rate of interest.

  1. $12.5$ $\%$
  2. $14$ $\%$
  3. $18$ $\%$

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Total deposited = 1800 * 48 = 86400. Interest = 108450 - 86400 = 22050. Using the recurring deposit formula I = P * n(n+1)/2 * r/(12*100), we get 22050 = 1800 * 1176 * r/1200, giving r = 12.5%. Option A matches.

AI explanation

The total amount deposited over 4 years is Rs. 1800 * 48 months = Rs. 86,400. The interest earned is the maturity value minus the principal, which is 108450 - 86400 = Rs. 22,050. Using the recurring deposit interest formula where I = P * n(n+1)/2 * r / 1200, we get 22050 = 1800 * 48 * 49 / 2 * r / 1200, simplifying to r = 12.5%.

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