Question

Amit deposited $150$ per month in a bank for $8$ months under the Recurring Deposit Scheme. What will be the maturity value of his deposits, if the rate of interest is $8\%$ per annum and interest is calculated at the end of every month

Answer 1

Given

$P=Rs$ $150$ per month.

$r=8$% p.a

$n=8$ month

$M.V=Pn+\frac{P\times n(n+1)}{2\times 12}\times \frac{r}{100}$

$=(150\times 8)+\frac{150\times (8\times 9)}{24}\times \frac{8}{100}$

$=1236$

$\therefore$ Maturity Value $=Rs$ $1236$