Question

Manish opens a Recurring Deposit Account with the Bank of Rajasthan and deposits Rs 600 per month for 20 months. Calculate the maturity value of this account, if the bank pays interest at the rate of $10\%$ per annum.

Answer 1

Installment per month $\left(P\right)=$ Rs 600
Number of $\mathrm{months}\left(n\right)=20$
Rate of interest $\left(r\right)=10\%$ p.a.
$\begin{array}{cc}& \therefore \text{M.V}=P\times n+P\times \frac{n(n+1)}{2\times 12}\times \frac{r}{100}\\ & =600\times 20+600\times \frac{20(20+1)}{2\times 12}\times \frac{10}{100}\\ & =12000+600\times \frac{420}{24}\times \frac{10}{100}\\ & =Rs12000+Rs1050\end{array}$
The amount that Manish will get at the time of maturity
$\begin{array}{cc}& =\text{Rs}13050\end{array}$