Advertisement Remove all ads

Mrs. Chhabra Deposits Rs 500 per Month in a Recurring Deposit Account for 4 Years at a Simple Interest Rate of 6% Pa. - Mathematics

Sum

Mrs. Chhabra deposits Rs 500 per month in a recurring deposit account for 4 years at a simple interest rate of 6% pa.

(a) Find the maturity value of deposit.

(b) Find the total interest she will earn after 2 years

Advertisement Remove all ads

Solution

Given that recurring deposit per month =Rs 500, Period= 4 years = 48 Months, R=6 % 

Money deposited= Monthly value x No of Months 

= 500 x 48 = Rs 24,000 ...... (1)

Total Principal for 1 Month= Rs `(500 xx (48) (48 + 1))/2` = Rs 588000

Interest = Rs `(6 xx 588000)/(12 xx 100)` = Rs 2940 ..........(2)

Hence Maturity Amount= (1) + (2) 

=Rs (24,000 + 2,940) 

Hence Maturity Amount= Rs 26,940

And Interest = Rs 2,940 

  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Frank ICSE Class 10 Mathematics Part 2
Chapter 3 Banking
Exercise 3.2 | Q 1 | Page 51
Advertisement Remove all ads

Video TutorialsVIEW ALL [1]

Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×