Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Manish opens a Recurring Deposit Account with the Bank of Rajasthan and deposits Rs. 600 per month for 20 months. Calculate the maturity value of this account, if the bank pays interest at the rate of $10\%$ per annum.

Answer 1

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> From the question, we have
Installment per month $\left(P\right)=$ Rs 600
Number of months $\left(n\right)=20$
Rate of interest $\left(r\right)=10\%$ p.a.
So,
$$\begin{array}{cc}\text{S.I.}& =P\times \frac{n(n+1)}{2\times 12}\times \frac{r}{100}\\ & =600\times \frac{20(20+1)}{2\times 12}\times \frac{10}{100}\\ & =600\times \frac{420}{24}\times \frac{10}{100}\end{array}$$
S.I $=$ Rs 1,050
Therefore,
The amount that Manish will be getting at the time of maturity is
$=\mathrm{Rs}(600\times 20)+1,050$
$=\mathrm{Rs}12,000+1,050$
$=\mathrm{Rs}13,050$