Sum

Mrs Khandelkar invests Rs 900 every month in a recurring deposit account for a period of 3 years at a simple interest rate of 8% pa

(a) Find the total interest she will earn at the end of the period.

(b) Find the maturity value of her deposits.

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#### Solution

Given that Recurring deposit per month =Rs 900, Period= 3 years = 36 Months, R=8 %

Money deposited= Monthly value x No of Months

= 900 x 36 = Rs 32,400 ...... (1)

Total Principal for 1 Month=Rs `(900 xx (36)(36 + 1))/2` = Rs 599400

Interest = Rs `(8 xx 599400)/(12 xx 100)` = Rs 3996 .......(2)

Hence Maturity Amount= (1) + (2)

=Rs (32,400 + 3,996)

Hence Maturity Amount= Rs 36,396

And Interest= Rs 3,996

Concept: Computation of Interest

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