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.
Instalment per month(P) = Rs600
Number of months(n) = 20
Rate of interest(r)= 10%p.a.
I=P×n(n+1)2×12×r100
=600×20(20+1)2×12×10100
=600×42024×10100=Rs 1050
The amount that Manish will get at the time of maturity
=Rs(600x20)+ Rs1,050
=Rs12,000+ Rs1,050
= Rs13,050