What is recurring deposit account?

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Solution

Recurring deposit is a special kind of term deposit offered by banks which help people with regular incomes to deposit a fix amount every month in to their recurring deposit account and earn interest at a rate applicable to fixed deposit.It is called 'RD' in short term.

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Similar questions

Q. Distinguish between the following:

Current account & Recurring deposit account

Q. 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.

Q. Mr. Deepak Rs.

300

per month and deposits in a bank in a recurring deposit account for

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years. What will he got on maturity? (Maturity value of recurring deposit accounts of monthly instalment of Rs.

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Q. Akash deposited ₹2000 per month in a recurring deposit account. If rate of interest on recurring deposit is 24% per annum and he gets ₹27120 on maturity, find the time (in months) of his recurring deposit account.

Mrs. Rita deposits ₹1600 every month in recurring deposit account at 9% p.a. simple interest. She receives ₹65,592 at the time of maturity. What is the total time for which the account was held?

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