1. Manish opens a Recurring Deposit Accountwith the Bank of Rajasthan

1.	1. Manish opens a Recurring Deposit Accountwith the Bank of Rajasthan and deposits 600per month for 20 months. Calculate thematurity value of this account, if the bank paysinterest at the rate of 10% per annum.
Answer» Installment per month (P) = 600Number of months (n) = 20Rate of Interest (r) = 10% Then,SI = P * n(n+1)/212 r/100 = 600 * 2021/24 10/100 = 600 * 420/24 * 10/100 = 1050 The amount Manish will get at the time of Maturity = 600*20 + 1050= 12000 + 1050= Rs 13050

1. Manish opens a Recurring Deposit Accountwith the Bank of Rajasthan and deposits 600per month for 20 months. Calculate thematurity value of this account, if the bank paysinterest at the rate of 10% per annum.

Answer»

Installment per month (P) = 600Number of months (n) = 20Rate of Interest (r) = 10%

Then,SI = P * n(n+1)/2*12 * r/100 = 600 * 20*21/24 * 10/100 = 600 * 420/24 * 10/100 = 1050

The amount Manish will get at the time of Maturity = 600*20 + 1050= 12000 + 1050= Rs 13050