Question

Mr. Ashok opens a recurring deposit account in the State Bank of India and deposits Rs

4,500 every month for 3 years at 6% per annum. Calculate:

(i) the interest he receives on the maturity of the account.

(ii) the maturity value of his account.​

Answer 1

Answer: interest = principle x nx(n+1)x r/2x12x100 =4500×36x(36+1)×6/2×12x100 =14985 mv = principle x time + interest =4500x36+14985=17698