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Mathematics

Katrina opened a recurring deposit account with a Nationalised Bank for a period of 2 years, If the bank pays interest at 6% per annum and the monthly installment is ₹1,000 find:

(i) interest earned in 2 years,

(ii) matured value .

Banking

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Answer

Given,

P = ₹1,000

n = 2 years = 24 months

r = 6%

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

∴I=1000×24×252×12×6100I=1000×60024×0.06I=1000×25×0.06I=₹1,500\therefore I = 1000 \times \dfrac{24 \times 25}{2 \times 12} \times \dfrac{6}{100} \\[1em] I = 1000\times \dfrac{600}{24} \times 0.06 \\[1em] I = 1000 \times 25 \times 0.06 \\[1em] I = ₹1,500

Sum deposited = ₹1,000 x 24 = ₹24,000

Maturity value = Sum deposited + Interest = ₹24,000 + ₹1,500 = ₹25,500.

Hence,(i)Interest earned by Katrina ₹1,500.(ii) Katrina got ₹25,500 at the time of maturity.

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