Question

) If you were to start a recurring deposit account in a bank depositing Rs 800/ permonth for 3&1/2 years at the rate of 7% p.a., calculate the amount you would receiveat the end of 3&1/2 years.​

Answer 1

$\large\underline{\sf{Solution-}}$

Amount deposited per month, P = Rs 800

Rate of interest, r = 7 % per annum

Time period, T = 3.5 years

Number of instâllments, n = 42

We know,

Amount received on maturity on deposit of Rs P per month at the rate of r % per annum for n months is

$\bold{ \red{\rm :\longmapsto\:\boxed{\text{Amount} =\text{nP} + \text{P} \times \dfrac{ \text{n(n + 1)}}{24} \times \dfrac{ \text{r}}{100} }}}$

So, on substituting the values, we get

$\rm :\longmapsto\:{\text{Amount} ={42 \times 800} + 800 \times \dfrac{ {42(42 + 1)}}{24} \times \dfrac{ \text{7}}{100} }$

$\rm :\longmapsto\:{\text{Amount} =33600 + 4\times \dfrac{ {7(43)}}{3} \times \dfrac{ \text{7}}{1} }$

$\rm :\longmapsto\:{\text{Amount} =33600 + \dfrac{ {8428}}{3} }$

$\rm :\longmapsto\:{\text{Amount} =33600 + 2809.33 }$

$\rm :\longmapsto\:{\text{Amount} =36409.33}$

So, Amount received on maturity is Rs 36409.33

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LEARN MORE

Interest received on deposit of Rs P per month at the rate of r % per annum for n months is given by

$\bold{ \red{\rm :\longmapsto\:\boxed{\text{I} = \text{P} \times \dfrac{ \text{n(n + 1)}}{24} \times \dfrac{ \text{r}}{100} }}}$