Sonia had a recurring deposit account in a bank and deposited $600 per month for2 1/2
years. If the rate of interest was 10% p.a., find the maturity value of this account.
(2018)
Answers
Answered by
2
Given,
Principal (P) = $600
Time (in years) = 2.5 years
Time (in months) = (2*12)+6 months = 30 months (n)
Rate of Interest (R) = 10 % p.a.
S.I = [P*n(n+1)/24*R/100]
= [600*(30*31)/24*10/100]
= [600*930/24*0.1]
= [600*38.75*0.1]
= $2325
Maturity Value = (Principal*n)+S.I
= (600*30)+2325
= 18000+2325
= $20325
The Maturity Value will be $20325.
I hope this helps.
Similar questions