NumericalModerate3 marks
Sonia had a recurring deposit account in a bank and deposited ₹600 per month for 2½ years. If the rate of interest was 10% p.a., find the maturity value of this account.
Topic: Recurring deposit / interest
Previous-year question practice database
Answer
Exam answer
P = ₹600 per month. n = 30 months. r = 10% p.a.
R.D. interest: I = P × n(n+1)/2 × r/(12×100)
= 600 × 30×31/2 × 10/1200 = ₹2,325.
Total deposits = 600 × 30 = ₹18,000.
Maturity value = 18,000 + 2,325 = ₹20,325.
Answer: ₹20,325.
Explanation
Use n=30 months in the recurring-deposit formula and add the interest to the total deposits.
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