Question

A man deposits 3 600 per month in a bank for 12
months under the Recurring Deposit Scheme. What
will be the maturity value of his deposits if the rate
of interest is 8% pa, and interest is calculated at
the end of every month?​

Answer 1

Answer:

Given

P=Rs 150 per month.

r=8% p.a

n=8 month

M.V=Pn+

2×12

P×n(n+1)

×

100

r

=(150×8)+

24

150×(8×9)

×

100

8

=1236

∴ Maturity Value =Rs 1236