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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

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Question

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.

Sum
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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 

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Chapter 2: Banking - Exercise 3.2 [Page 51]

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Frank Mathematics Part 2 [English] Class 10 ICSE
Chapter 2 Banking
Exercise 3.2 | Q 2 | Page 51

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