Question

Amit deposited Rs 150 per month in a 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

P = Rs. 150,

no of months = 8,

rate = 8 %

$MaturityValue=P\times n+P\times \frac{n(n+1)}{2\times 12}\times \frac{r}{100}$

$=150\times 8+150\times \frac{8(8+1)}{2\times 12}\times \frac{8}{100}=Rs1236$