Question

rahul deposited rs 500 per month for 60 months in a banks recurring deposit account if the bank pays interest 6% per annum,find the amount he will get on maturity

Answer 1

The amount Rahul will get on maturity is Rs. 34575.

Given:

The amount deposited per month = Rs. 500.

Time Period = 60 months.

Rate of interest = 6%.

To find:

The amount which Rahul will get on maturity needs to be determined.

Solution:

Knowing the formula for simple interest for recurring deposit accounts.

S.I. = P × N × $\frac{(N+1)}{24}$ × R%

Where,

P is the amount deposited for one month.

N is the time period in months.

R is the rate of interest.

The amount deposited per month = Rs. 500.

So, the amount deposited i.e. principal in 60 months (P) = Rs. 500 × 60 = Rs. 30000.

∴ Put P = Rs. 500, N = 60, R = 6% in the above formula.

S.I. = 500 × 60 × $\frac{(60+1)}{24}$ × $\frac{6}{100}$

Canceling numerator and denominator by 2400.

⇒ S.I. = Rs. 4575.

∴ Amount on maturity (A) = Principal + Interest.

⇒ A = 30000 + 4575

⇒ A = Rs. 34575.

Therefore, after maturity, the amount Rahul gets will be Rs. 34575.

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