Definitions [3]
Definition: Recurring Deposit Account (R.D. Account)
A scheme in which a fixed amount is deposited every month for a fixed period.
Definition: Maturity Period
Total time (in months/years) for which deposits are made.
Definition: Maturity Value (M.V.)
Total amount received at the end = Total deposits + Interest.
Formulae [3]
Formula: Interest on R.D.
\[I=P\times\frac{n(n+1)}{2\times12}\times\frac{r}{100}\]
Months = Years × 12
-
P = Monthly instalment
-
n = Number of months
-
r = Rate of interest (% p.a.)
-
I = Interest
-
M.V. = Maturity Value
Formula: Total Amount Deposited
Total Deposit = P × n
Formula: Maturity Value
M.V. = P × n + I
Important Questions [22]
- Virat Opened a Savings Bank Account in a Bank on 16th April 2010. His Pass Book Shows the Following Entries: Calculate the Interest Virat Earned at the End of 31st July 2010 at 4% per Annum Interest. What Sum of Money Will He Receive If He Closed the Account on 1st August 2010?
- Shahrukh Opened a ‘Recurring Deposit’ Account in a Bank and Deposited Rs. 800 Per Month for 1½ Years. If He Received Rs. 15,084 at the Time of Maturity, Find the Rate of Interest per Annum.
- Mr. Gupta Opened a Recurring Deposit Account in a Bank. He Deposited Rs. 2500 per Month for Two Years. at the Time of Maturity He Got Rs. 67,500. Find:
- A Page from the ‘Savings Bank’ Account of Priyanka is Given Below: If the Interest Earned by Priyanka for the Period Ending September 2006 is Rs. 175, the Find the Rate of Interest.
- Sonia Had a Recurring Deposit Account in a Bank and Deposited Rs. 600 per Month for 2 1/2 Years. If the Rate of Interest Was 10% P.A., Find the Maturity Value of this Account.
- A Page from the Savings Bank Account of Mrs Ravi is Given Below. She Closed the Account on 30th September 2006. Calculate the Interest Mrs Ravi Earned at the End of 30th September 2006 at 4.5% per Annum Interest. Hence, Find the Amount She Receives on Closing the Account.
- Mohan has a recurring deposit account in a bank for 2 years at 6% p.a. simple interest. If he gets Rs. 1200 as interest at the time of maturity, find: the monthly instalment. the amount of maturity.
- A Page from the Savings Bank Account of Mr Prateek is Given Below: If He Receives Rs. 198 as Interest on 1st January 2007, Find the Rate of Interest Paid By the Bank.
- Mr. Choudhury Opened a Saving’S Bank Account at the State Bank of India on 1st April 2007. the Entries of One Year as Shown in His Pass Book Are Given Below: Ind the Interest Paid on 1st April, 2008.
- Mrs Kapoor Opened a Savings Bank Account in State Bank of India on 9th January 2008. Her Pass Book Entries for the Year 2008 Are Given Below: Find Interest Mrs Kapoor Receives on Closing the Account.
- Rekha opened a recurring deposit account for 20 months. The rate of interest is 9% per annum and Rekha receives Rs. 441 as interest at the time of maturity. Find the amount Rekha deposited each month.
- Naveen deposits ₹ 800 every month in a recurring deposit account for 6 months. If he receives ₹ 4884 at the time of maturity, then the interest he earns is ______.
- Salman deposits ₹ 1000 every month in a recurring deposit account for 2 years. If he receives ₹ 26000 on maturity, find: i. the total interest Salman earns. ii. the rate of interest.
- A Page from a Savings Bank Account Passbook is Given Below: Calculate the Interest for the 6 Months from January to June 2016, at 6% per Annum. and If the Account is Closed on 1st July 2016, Find the Amount Received by the Account Holder.
- Suresh has a recurring deposit account in a bank. He deposits ₹ 2000 per month and the bank pays interest at the rate of 8% per annum. If he gets ₹ 1040 as interest at the time of maturity
- Mr. Richard has a recurring deposit account in a bank for 3 years at 7.5% p.a. simple interest. If he gets Rs. 8325 interest at the time of maturity, find the monthly deposit the maturity value.
- Priyanka Has a Recurring Deposit Account of Rs. 1000 per Month at 10% per Annum. If She Gets Rs. 5550 as Interest at the Time of Maturity, Find the Total Time for Which the Account Was Held.
- Katrina opened a recurring deposit account with a Nationalised Bank for a period of 2 years. If the bank pays interest at the rate 6% per annum and the monthly instalment is Rs. 1,000
- Mr. Britto deposits a certain sum of money each month in a Recurring Deposit Account of a bank. It the rate of interest is of 8% per annum and Mr. Britto gets Rs. 8,088 from the bank after 3 years
- Given Below Are the Entries in a Saving Bank A/C Passbook. Calculate the Interest for Six Months from February to July at 6% P.A.
- Kiran Deposited Rs. 200 per Month for 36 Months in a Bank’S Recurring Deposit Account. If the Bank Pays Interest at the Rate of 11% per Annum, Find the Amount She Gets on Maturity.
- Ahmed Has a Recurring Deposit Account in a Bank. He Deposits Rs. 2,500 per Month for 2 Years. If He Gets Rs. 66,250 at the Time of Maturity, Find 1) The Interest Paid by the Bank 2) the Rate of Interest
