Question

Saloni deposited Rs 150 per month in her bank account for eight months under the Recurring Deposit scheme. What will be the maturity value of her deposit, if the rate of interest is 8% per anum and the interest is calculated at the end of every month?
[3 MARKS]

Answer 1

Formula: 1 Mark
Steps: 1 Mark
Answer: 1 Mark

Monthly instalment = Rs 150
Time = 8 months
Total amount deposited = Rs 150 $\times$ 8 = Rs 1200
Principal for one month = Monthly instalment $\times \frac{n(n+1)}{2}=150\times \frac{\left(8\right(8+1\left)\right)}{2}=\frac{150\times 8\times 9}{2}=Rs5400$
Interest on Rs 5400 for one month at the rate of 8% p.a. = $\frac{P\times R\times T}{100}$
$=\frac{5400\times 8\times 1}{12\times 100}=\frac{P\times R\times T}{100}$
$=\frac{5400\times 8\times 1}{12\times 100}$ = Rs 36
Amount received on maturity = Rs 1200 + Rs 36 = Rs 1,236