Question

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Ajit deposited ₹ 200 per month in a bank for 6 months under the recurring deposit scheme. What will be the maturity value of his deposits, if the rate of interest is 6% per annum and the interest is calculated at the end of every month?

MODEL :-[ On calculating maturity value when Interest in compounded ]

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Answer 1

$\huge\bf\purple{\mid{\overline{\underline{Answer :- }}}\mid}$

$\sf{\huge{\underline{Given :-}}}$

• Ajit deposited ₹ 200 per month in a bank for 6 months under the recurring deposit scheme.

$\sf{\huge{\underline{To\:Find :-}}}$

• The maturity value of his deposits, if the rate of interest is 6% per annum and the interest is calculated at the end of every month.

$\sf{\huge{\underline{Answer :-}}}$

According to the question,

Ajit deposited ₹ 200 per month in a bank for 6 months under the recurring deposit scheme.

Monthly deposit (P) = ₹ 200 per month

Time (n) = 6 months

Rate (r) = 6% per annum

The interest is calculated at the end of every month.

We know,

Maturity Value = P $(1 + r) {}^{n}$

➝ 200 × $(1 + \frac{6}{100}$) ^n

➝ 200 × $(1 + 0.06) {}^{6}$

➝ 200 × $(1.06) {}^{6}$

➝ 200 × 1.418

➝ 283.6