Question

Mrs. Goswami deposits Rs 1000 every month in a Recurring Deposit Account for 3 years at 8$\%$ simple interest per annum. Find the matured value.
[4 MARKS]

Answer 1

Formula: 1 Mark
Steps: 2 Marks
Answer: 1 Mark

Monthly instalment = Rs 1000
Time = 3 years
= 3 $\times$ 12 = 36 months
Total amount deposited = $Rs1000\times 36=Rs36000$
Principal for 1 month = Monthly instalment $\times \frac{n(n+1)}{2}$
$=Rs1000\times \frac{36(36+1)}{2}$
$=Rs1000\times 18\times 37$
= Rs 666000
$Interest=\frac{P\times R\times T}{100}$
$=\frac{666000\times 8\times 1}{12\times 100}=Rs4440$
$\therefore$ Matured value = Total amount deposited + Interest
= Rs 36,000 + Rs 4,440
= Rs 40,440