Ramen deposits on the first day of every month in a monthly savings scheme. In this way, he has deposited money for year. If the rate of simple interest is per annum, then the total amount he will get at the end of the year is
- A
- B
- C
- D
Solution & Step-by-step Explanation
Monthly installment ()
Number of months ()
Total Principal deposited
Rate of interest () per annum.
The equivalent time for calculating simple interest on a monthly recurring deposit is:
Now calculate the total interest:
Therefore, the total maturity amount received at the end of the year is:
Number of months ()
Total Principal deposited
Rate of interest () per annum.
The equivalent time for calculating simple interest on a monthly recurring deposit is:
Now calculate the total interest:
Therefore, the total maturity amount received at the end of the year is: