Hello candidate,

Fixed deposit is the amount which the investor deposits in his bank account for a longer period of time to get interest rate over the principal amount for a continuous amount of time.

Here, you get a 5.5% Intrest rate and get interest upto 40,000 per month, so the Principal Amount for 1 year is equal to 40000*100/5.5= Rs727272.72.

Hope it helps!!

Have a good day.