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Mathematics

Amit deposited ₹ 150 per month in a bank for 8 months under Recurring Deposit Scheme. What will be the maturity value of his deposits, if the rate of interest is 8% per annum and interest is calculated at end of every month ?

Banking

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Answer

Given, P = ₹ 150, n = 8 months and r = 8%

I = P×n(n+1)2×12×r100P \times \dfrac{n(n + 1)}{2 \times 12} \times \dfrac{r}{100}

∴I=₹150×8×92×12×8100=₹150×24100=₹36.\therefore I = ₹ 150 \times \dfrac{8 \times 9}{2 \times 12} \times \dfrac{8}{100} \\[1em] = ₹ 150 \times \dfrac{24}{100} \\[1em] = ₹ 36.

Sum deposited = P × n = ₹ 150 × 8 = ₹ 1200.

Maturity value = Sum deposited + Interest = ₹ 1200 + ₹ 36 = ₹ 1236.

Hence, the amount that Amit will get at maturity = ₹ 1236.

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