Question

(1) Neema had a recurring deposit account in a bank and deposited 600 per month for
2and half years. If the rate of interest was 10% per annum, find the maturity value of this
account.

(i) Sajal invests 600 per month for 2 and half years in a recurring deposit scheme of Oriental Bankof Commerce. If the bank pays simple interest at 6 2/3% per annum, find the amount received
by him on maturity.​

Answer 1

Answer:

1) Maturity value for the recurring deposits = Total Sum of Money deposited + Interest earned on it.

P=Amount deposited every month

n=number of months the deposits were made

r%=rate of interest

Maturity Value=P×n+P×

2×12

n(n+1)

×

100

r

Here, P=Rs.600,n=30,r=10%

Maturity Value=600×30+600×

2×12

30(30+1)

×

100

10

=Rs.20325