Question

Pramod deposits Rs 600 per month in a Recurring Deposit Account for 4 years. If the rate of interest is 8% per year; calculate the maturity value of his account.

Answer 1

P=Rs.600
n=48
r=8% p.a.

S.I = $P\times \frac{n(n+1)}{2\times 12}\times \frac{r}{100}$

$=600\times \frac{48\times (48+1)}{2\times 12)}\times \frac{8}{100}$

$=600\times \frac{2352}{24}\times \frac{8}{100}$

=Rs.4,704

the amount that Pramod will get at the time of maturity = $P\times n+S.I$

$=(600\times 48)+4,704$

$=28,800+4,704$

=33,504

Answer:- Rs.33,504