Each of A and B both opened recurring deposit accounts in a bank. If A deposited Rs 1,200 per month for 3 years and B deposited Rs1,500 per month for 212 years; find, on maturity, who will get more amount and by how much? The rate of interest paid by the bank is 10% per annum.
For A
Installment per month(P) = Rs1,200
Number of months(n) = 36
Rate of interest(r)= 10%p.a.
S.I.=P×n(n+1)2×12×r100
=1200×36(36+1)2×12×10100
=1200×133224×10100=Rs 6660
The amount that A will get at the time of maturity
=Rs(1,200x36)+ Rs6,660
=Rs43,200+ Rs6,660
= Rs49,860
For B
Installment per month(P) = Rs1,500
Number of months(n) = 30
Rate of interest(r)= 10%p.a.
S.I.=P×n(n+1)2×12×r100
=1500×30(30+1)2×12×10100
=1500×93024×10100=Rs 5812.5
The amount that B will get at the time of maturity
=Rs(1,500x30)+ Rs5,812.50
=Rs45,000+ Rs5,812.50
= Rs50,812.50
Difference between both amounts= Rs50,812.50 - Rs49,860
= Rs952.50
Then B will get more money than A by Rs 952.50