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Question
Amit deposited Rs. 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?
Amit deposited Rs. 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?
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Solution
Already stated in the problem statement:
P = Rupees 150 per month.
r = 8 % per annum.
n = 8 months duration.
Formula:
Maturity value = Pn + P x n (n+1) /2 x 12 x r/100
= (150 x 8 ) + 150 x ( 8 x 9 ) / 24 x 8 / 100
= 1236
Therefore, Maturity Value = Rs. 1236
Already stated in the problem statement:
P = Rupees 150 per month.
r = 8 % per annum.
n = 8 months duration.
Formula:
Maturity value = Pn + P x n (n+1) /2 x 12 x r/100
= (150 x 8 ) + 150 x ( 8 x 9 ) / 24 x 8 / 100
= 1236
Therefore, Maturity Value = Rs. 1236
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