Question

raj deposits 300 pm.in a bank which pays 12%
simple interest recurring deposits, find the
interest paid
by the bank and the
marturity amount.


plzz guys answer fast...i m in a hurry...
who will give the first correct answer., i will make his answer as the brainliest one..

GOOD LUCK...GOD BLESS UH ALL​

Answer 1

Answer:

The formula used for arriving at the maturity value of a recurring deposit over a certain period at a certain interest rate is:

In case of recurring deposits, the compounding happens on quarterly basis.

The formula is: A = P*(1+R/N)^(Nt)

Here, A is the maturity amount in Rs., the recurring deposit amount is 'P' in Rs., 'N' is the compounding frequency, interest rate R in percentage and 't' is the tenure.

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

hope it's helpful