Question

In a recurring deposit, the maturity value is given by:

Options

• (P × n) + I

• P × n × I

• `(P xx n xx I)/100`

• `((P xx n) + I)/100`

Answer 1

(P × n) + I

Explanation:

The total amount at maturity equals the sum of all monthly deposits (P × n) plus the interest earned I on those deposits.

For recurring deposits `I = P xx [(n(n + 1))/(2 xx 12)] xx r/100`. 

So, M.V. = P × n + I.