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Salom deposited Rs 150 per month in a bank for 8 months under the Recurring Deposit Scheme. ‘What will be the maturity value of his deposit if the rate of interest is 8% per annum? - Mathematics

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Question

Salom deposited Rs 150 per month in a bank for 8 months under the Recurring Deposit Scheme. ‘What will be the maturity value of his deposit if the rate of interest is 8% per annum?

Sum
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Solution

Deposit per month = Rs. 150
Rate of interest = 8% per
Period (x) = 8 month
∴ Total principal for one month

= `150 xx (x(x + 1))/(2)`

= `"Rs".150 xx (8(8 xx 1))/(2)`

= `(150 xx 8 xx 9)/(2)`
= Rs.5400.
∴ Interest

= `"prt"/(100)`

= `(5400 xx 8 xx 1)/(100 xx 12)`
= Rs.36
∴ Amount of Maturity
= Rs.150 x 8 + Rs.36
= Rs.1200 + 36
= Rs.1236.

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Chapter 2: Banking - Exercise 2.1

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