Question

Your father and mother saves Rs. 1800/ and Rs.2200/ Every month and deposit in a recurring deposit scheme. If the rate of interest is 8% , find the maturity value after three years.

Answer 1

Answer:

13000 on mother and father

Answer 2

Given,

The amount of money saved by the father$\[ = 1800\]$

The amount of money saved by the mother$\[ = 2200\]$

Solution,

Formula used, the maturity value$\[ = \left( {Pn} \right) + \frac{{Pn\left( {n + 1} \right)}}{{24}} \times \frac{r}{{100}}\]$

The maturity value after three years for the father and the mother

$\[\begin{array}{l} = \left[ {\left( {4000 \times 12} \right) + \frac{{1800 \times 12 \times \left( {12 + 1} \right)}}{{24}} \times \frac{8}{{100}}} \right] \times 3\\ = \left[ {48000 + 936} \right] \times 3\\ = 48936 \times 3\\ = 146808\end{array}\]$

Hence, the maturity value after three years is Rs $\[146808\]$