Question

sonia had a recurring deposit account in a bank and deposited ₹600 per month for 2 1/2 years. if the rate of interest was 10% p.a. , find the maturity value of this account

Answer 1

given:
p=Rs.600
r=10%
n=5/2years =30months
mv=p*n+p*n(n+1)/2*12*r/100
mv=600*30+600*30(30+1)/2*12*10/100
mv=18000+18000*31/24*10
mv=18000+2325
mv=Rs.20325

Answer 2

Answer:

The maturity value for the given account = Rs. 20325

Step-by-step explanation:

Principal = Rs 600

$Time=2\tfrac{1}{2}=2.5\thinspace{ years}$

Time, n = 2.5 × 12

             = 30 months

Rate of Interest = 10% p.a.

$\text{Rate, r = }\frac{10}{12\times 100}=0.0083\thinspace{ monthly}$

Now, Maturity value of the account is given by the formula :

$\text{Maturity value = }Principal\times n+Principal\times \frac{n(n+1)}{2}\times r\\\\\implies \text{Maturity value = }600\times 30+600\times \frac{30(30+1)}{2}\times 0.0083\\\\\implies\bf\textbf{Maturity Value = Rs. }20325$

Hence, The maturity value for the given account = Rs. 20325