Multiple choice

Ashok deposits Rs. 5000 per month in a bank for 5 years under a recurring deposit scheme. If he is entitled to get Rs. 350000 as maturity value, find the rate of interest per annum.

  1. $6.55\%$
  2. $8.20\%$
  3. $10.5\%$
  4. $12.4\%$
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A Correct answer
Explanation

Total deposit = 5000 * 60 = 300,000. Maturity value = 350,000. Interest = 50,000. Using the SI formula for RD: Interest = P * (n(n+1)/24) * (r/100), where n=60. Solving for r gives 6.55%.

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