Question

Kiran deposited Rs 200 per month for 36 months in a bank's Recurring Deposit Account. If the bank pays interest at the rate of 11% per annum, find the amount she gets on maturity.
[3 MARKS]

Answer 1

Formula: 1 Mark
Steps: 1 Mark
Answer: 1 Mark

Monthly instament = Rs 200
Time = 36 months
Total amount deposited = Monthly instalment $\times n=Rs200\times 36=Rs7200$
Principal for one month = Monthly instalment $\times \frac{n(n+1)}{2}=Rs200\times \frac{36(36+1)}{2}$
$=Rs100\times 36\times 37=Rs133200$
Interest $=\frac{133200\times 11\times 1}{12\times 100}=RS1221$ $[S.I.=\frac{P\times R\times T}{100}]$
$\therefore$ Amount received on maturity = Total amount deposited + Interest = Rs 7200 + Rs 1221 = Rs 8,421