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Question

Sonia has a recurring deposit account in a bank and deposited Rs. $$600$$ per month for $$2\cfrac{1}{2}$$ years. If the rate of interest was $$10\%$$ p.a., find the maturity value of this account.


Solution

Maturity value for the recurring deposits = Total Sum of Money deposited + Interest earned on it.
$$P = Amount \ deposited \ every \ month  $$
$$n = number \ of \ months \ the \ deposits \ were \ made $$
$$r\% = rate \ of \ interest $$
$$Maturity \ Value = P \times n + P \times \cfrac{n(n+1)}{2 \times 12} \times \cfrac{r}{100} $$
Here, $$P= Rs. 600, n=30, r=10\%$$ 
$$Maturity \ Value  = 600 \times 30 + 600 \times \cfrac{30(30+1)}{2 \times 12} \times \cfrac{10}{100} = Rs. 20325  $$

Mathematics

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