Question

Saloni deposited Rs 150 per month in her bank 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 annum and the interest is calculated at the end of every month?
[4 MARKS]

Answer 1

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

Total amount deposited $=Rs(150\times 8)=Rs1200$
No. of months of interest $=\frac{8\times 9}{2}=36$
$\therefore Interest=Rs\frac{1200\times 36\times 1}{100\times 12}=Rs36$
Amount at maturity = Rs (1200 + 36) = Rs 1236.
Hence, the maturity value of her deposit is Rs 1236