If rama pays Rs. 1,000 at the beginning of every month in a post office recurring deposit for 5 years. If the rate of interest is 7%. What is the amount Rama gets at the end of five years? A) Rs. 62,675 B) Rs. 72,675 C) Rs. 10,675 D) Rs. 70,675
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Answer:
None of the options, he gets Rs. 64200
Step-by-step explanation:
the formula for interest is I = (PxTxR)/100
I is interest
P is principal
T is time
R is rate
he deposited 12000 every year. so by 5 years, he deposited 60,00
I = (12000 x 5 x 7)/100
I = 420000/100
I = 4200
4200+60000= 64200