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Mr. Dhruv deposits Rs 600 per month in a recurring deposit account for 5 years at the rate of 10% per annum (simple interest). Find the amount he will receive at the time of maturity. - Mathematics

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Question

Mr. Dhruv deposits Rs 600 per month in a recurring deposit account for 5 years at the rate of 10% per annum (simple interest). Find the amount he will receive at the time of maturity.

Sum
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Solution

Deposit per month = ₹ 600

Rate of interest = 10% p.a.

Period (n) = 5 years 60 months.

Total principal for one month

= `₹600 xx ("n"("n" + 1))/(2)`

= `₹600 xx (60(60 + 1))/(2)`

= `₹(600 xx 60 xx 61)/(2)`

= ₹ 1098000

Interest

= `"prt"/(100)`

= `(1098000 xx 10 xx 1)/(100 xx 12)`

= ₹ 9150

∴ Amount of maturity

= ₹ 600 × 60 + ₹ 9150

= ₹ 36000 + ₹ 9150

= ₹ 45150.

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Chapter 2: Banking - Chapter Test

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Nootan Mathematics [English] Class 10 ICSE
Chapter 2 Banking
Chapter Test | Q 7. | Page 25

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