Question

If Ramesh Kumar has an R.D. in a post office, he has to deposit:

Options

• an amount only once

• the same amount every month

• a decreasing amount every month

• an increasing amount every month

Answer 1

The same amount every month

Explanation:

R.D. means Recurring Deposit you pay a fixed monthly instalment, the same amount each month into the account; interest is then calculated on those regular equal instalments. This is shown in the RD examples and formulas where P is the monthly instalment.