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Mrs. Mathew opened a Recurring Deposit Account in a certain bank and deposited ₹ 640 per month for 4 ½ years. Find the maturity value of this account

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Question

Mrs. Mathew opened a Recurring Deposit Account in a certain bank and deposited ₹ 640 per month for 4 ½ years. Find the maturity value of this account, if the bank pays interest at the rate of 12% per year.

Sum
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Solution

Installment per month (P) = Rs. 640

Number of months (n) = 54

Rate of interest (r) = 12% p.a.

∴ `S.I. = P xx (n(n + 1))/(2 xx 12) xx r/100`

= `640 xx (54(54 + 1))/(2xx 12) xx 12/100`

= `640 xx 2970/24 xx 12/100`

= Rs. 9,504

The amount that Manish will get at the time of maturity

= Rs. (640 × 54) + Rs. 9,504

= Rs. 34,560 + Rs. 9,504

= Rs. 44,064

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Chapter 2: Banking (Recurring Deposit Account) - Exercise 2 (A) [Page 23]

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Selina Concise Mathematics [English] Class 10 ICSE
Chapter 2 Banking (Recurring Deposit Account)
Exercise 2 (A) | Q 2. | Page 23

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