Assertion (A): In a recurring deposit account, a man deposits ₹ 1000 per month for 1 year. On maturity he receives ₹ 13500. The amount of interest he earns is ₹ 1500.
Reason (R): Interest earned = Maturity value − Total amount deposited.
- (a)(A) is true and (R) is false.
- (b)(A) is false and (R) is true.
- (c)Both (A) and (R) are true, and (R) is the correct explanation for (A).
- (d)Both (A) and (R) are true, but (R) is not the correct explanation for (A).
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Given,
Deposit per month (P) = ₹ 1000
Time (n) = 1 year = 12 months
Maturity value = ₹ 13,500
Total amount deposited = P × n
= 1000 × 12
= ₹ 12,000
By formula,
Interest earned = Maturity value − Total amount deposited
= 13500 − 12000
= ₹ 1,500
So assertion (A) is true.
We know that,
Maturity value = Total amount deposited + Interest earned
⇒ Interest earned = Maturity value − Total amount deposited
So reason (R) is true and it correctly explains the assertion (A).
Thus, Both (A) and (R) are true, and (R) is the correct explanation for (A).
Hence, option 3 is the correct option.