Question

Vinod deposits Rs 700 every month in a recurring deposit account at the interest rate of 9$\%$ per annum for 12 months. What maturity amount he gets on his recurring deposit account.

Answer 1

Given P = Rs 700

r = 9$\%$

n = 12 months

Amount deposited = n $\times p$ = 700 $\times$ 12=8400

Interest = $\frac{p\times n(n+1)}{2\times 12}\left(\frac{r}{100}\right)$

Interest = $\frac{700\times 12\times 13}{2\times 12}\times \left(\frac{9}{100}\right)=Rs409.5$

Maturity amount = Amount deposited + Interest = 8400 + 409.5 = 8809.5