Question

Rina deposited ₹400 per month for 1 years 3months in a recurring deposit account. If the rate of interest is 8%. Find the maturity amount.​

Answer 1

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

Given that,

Amount of instâllment deposited per month = ₹ 400

Rate of interest per annum, r = 8 %

Time = 1 year 3 months.

So, Number of instâllments = 15

We know that

Amount, A on instâllment of Rs P invested for n months at the rate of r % per annum is given by

$\blue\bigstar \: \red{\boxed{\mathbf{A \: = \: nP \: + \: \dfrac{n \: (n \: + \: 1)P}{24 } \times \dfrac{r}{100} }}}$

where,

A = Amount received on maturity or maturity value

P = Amount of monthly instâllment

r = rate of interest per annum

n = number of monthly instâllment.

So, using the formula, we get

$\rm :\longmapsto\:A \: = \: 15 \times 400 \: + \: \dfrac{15(15 + 1) \times 400}{24 } \times \dfrac{8}{100}$

$\rm :\longmapsto\:A \: = \: 6000\: + \: \dfrac{15 \times 16\times 4}{24} \times 8$

$\rm :\longmapsto\:A \: = \: 6000\: + \: \dfrac{15 \times 16\times 4}{3}$

$\rm :\longmapsto\:A \: = \: 6000\: + \: 5 \times 64$

$\rm :\longmapsto\:A \: = \: 6000\: + \: 320$

$\rm :\longmapsto\:A \: = \: 6320$

Hence,

• Maturity Value is Rs 6320

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Additional Information :-

Interest, I on instâllment of Rs P invested for n months at the rate of r % per annum is given by

$\blue\bigstar \: \red{\boxed{\mathbf{I \: = \:\: \dfrac{n \: (n \: + \: 1)P}{24 } \times \dfrac{r}{100} }}}$

where,

I = Interest received on maturity or maturity value

P = Amount of monthly instâllment

r = rate of interest per annum

n = number of monthly instâllment.