Question

A man deposits 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% p.a., and interest is calculated at
the end of every month?​

Answer 1

P=Rs 600

n=12 months

r=8%

I=P×(n+1)/2×12 ×r/100

=600×12×13/2×12×12/100

I=Rs468

M.V=P×n+I

=600×12+468

=7200+468

M.V=Rs7668