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Mathematics

Dhruv deposits ₹600 per month in a recurring deposit account for 5 years at the rate of 10% per annum (simple interest). Find the amount he will receive at the time of maturity.

Banking

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Answer

Here,
P = money deposited per month = ₹600,
n = number of months for which the money is deposited = 5 x 12 = 60,
r = simple interest rate percent per annum = 10

Using the formula:

I=P×n(n+1)2×12×r100, we getI=(600×60×612×12×10100) =₹9150I = P \times \dfrac{n(n+1)}{2 \times 12} \times \dfrac{r}{100} \text{, we get} \\[0.7em] I = \Big( 600 \times \dfrac{60 \times 61}{2 \times 12} \times \dfrac{10}{100} \Big) \\[0.5em] \enspace\medspace = \text{₹9150}

Using the formula:

MV=P×n+I, we getMV=(600×60)+9150 =36000+9150 =₹45150MV = P \times n + I \text{, we get} \ MV = (600 \times 60) + 9150 \ \qquad\medspace = 36000 + 9150 \ \qquad\medspace = \text{₹45150}

∴ The amount Dhruv will get at the time of maturity = ₹45150.

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