Mrs Mathew opened a Recurring Deposit Account in a certain bank and deposited Rs 640 per month for 4 1-2 years- Find the maturity value of this account- if the bank pays interest at the rate of 12 - per year-

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Standard X

Mathematics

Recurring Deposit Account

Mrs Mathew op...

Question

Mrs Mathew opened a Recurring Deposit Account in a certain bank and deposited Rs 640 per month for $4 \frac{1}{2}$ years. Find the maturity value of this account, if the bank pays interest at the rate of 12 % per year.

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Solution

Principal, P = Rs 640

Rate of interest, r = 12% per year

Time, n = 4.5 years

= 4.5 $\times$ 12 months

= 54 months

Amount of maturity = $P \times n + S . I .$

$P cross times n plus P cross times fraction numerator n open parentheses n plus 1 close parentheses over denominator 2 end fraction cross times r over 100 equals 640 cross times 54 plus fraction numerator 640 cross times 54 open parentheses 54 plus 1 close parentheses over denominator 2 end fraction cross times 1 over 100 equals 34560 plus fraction numerator 34560 cross times 55 over denominator 200 end fraction equals 34560 plus 9504 equals 44064$

∴ Amount of maturity is Rs 44,064

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Mrs Mathew opened a Recurring Deposit Account in a certain bank and deposited Rs 640 per month for 412 years. Find the maturity value of this account, if the bank pays interest at the rate of 12 % per year.

Principal, P = Rs 640 Rate of interest, r = 12% per year Time, n = 4.5 years = 4.5 × 12 months = 54 months Amount of maturity = P×n+S.I. ∴ Amount of maturity is Rs 44,064

Mrs Mathew opened a Recurring Deposit Account in a certain bank and deposited Rs 640 per month for $4 \frac{1}{2}$ years. Find the maturity value of this account, if the bank pays interest at the rate of 12 % per year.