Question

In a recurring deposit (R.D.):

Options

• a person gets the same interest every month

• a person gets the same maturity amount every year

• a person deposits the same amount every month

• the government deposits an amount equal to the interest every year

Answer 1

A person deposits the same amount every month

Explanation:

A recurring deposit (R.D.) is a scheme where the depositor pays a fixed specified amount each month for a chosen period; the maturity value is the total of those monthly instalments plus interest.