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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