Question

Mr Amit deposited Rs. 150 per month in a bank for 8 months under the recurring deposits scheme. What will be the maturiy value of his deposits, if the rate of interest is 8% per annum and interest is calculated at the end of every month?

Answer 1

Given that
Amit deposited Rs. 150 per month in a bank for 8 months under the reccuring deposits scheme
Rate of Interest = 8% per annum
$\therefore$ The maturity value of his deposits =$150\times 8+150\times \frac{8\times 9}{2}\times \frac{8}{100}\times \frac{1}{12}=1200+36=Rs.1236$
Hence, the value of his deposit at the end of 8 months is Rs. 1236