Question

Amit deposited Rs 800 per month in a Recurring Deposit Account for 1 year at the rate of 10% per annum. Find the amount Amit will get on maturity.
[4 MARKS]

Answer 1

Formula: 1 Mark
Steps: 2 Marks
Answer: 1 Mark

Monthly instalment = Rs 800
Time = 1 year = 12 months
Total amount deposited = $Rs800\times 12=Rs9600$
Equivalent Principal for 1 month = Monthly instalment $\times \frac{n(n+1)}{2}$
$=Rs800\times \frac{12(12+1)}{2}=Rs400\times 12\times 13$
= Rs 62400
$Interest=\frac{P\times R\times T}{100}$
$=\frac{62400\times 10\times 1}{12\times 100}=Rs520$
$\therefore$ Matured value = Total amount deposited + Interest
= Rs 9600 + Rs 520 = Rs 10,120