Question

₹ 900 is deposited every month in a recurring deposit account at 10% rate of interest, the interest earned in 8 months is ______.

Options

• ₹ 270

• ₹ 2,700

• ₹ 27

• ₹ 210

Answer 1

₹ 900 is deposited every month in a recurring deposit account at 10% rate of interest, the interest earned in 8 months is ₹ 270.

Explanation:

Given P = ₹ 900,

n = 8 month's,

R = 10%

∴ Interest (I) = `P xx (n(n + 1))/(2 xx 12) xx R/100`

= `900 xx (8(8 + 1))/(2 xx 12) xx 10/100`

= `900 xx (8 xx 9)/(2 xx 12) xx 10/100`

= ₹ 270