Mr. Kirti Shah has a recurring deposit account in a bank. He deposits Rs.
500 per month for a period of 4 years. If at the time of maturity he gets
Rs. 28410, find the rate of interest paid by the bank. *
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For a 12 month RD of Rs 5,000 at 8 percent per annum, the maturity value will be the sum of the series as below:
A = P*(1+R/N)^(Nt)
= 5000*(1+.0825/4)^(4*12/12) = 5425.44
= 5000*(1+.0825/4)^(4*11/12) = 5388.64
...
= 5000*(1+.0825/4)^(4*1/12) = 5034.14
Total maturity value ( sum of series) = Rs 62730.85
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