Question

Mohan has a Recurring Deposit Account in State Bank of India and deposits Rs150 per month in a

bank for 8 months. What will be the maturing value of his deposits if the rate of interest is 8% per
annum and interest is calculated at the end of every month?

Answer 1

rs 1236

Explanation:

Given

P=Rs 150 per month.

r=8% p.a

n=8 month

M.V=Pn+

2×12

P×n(n+1)

​

×

100

r

​

=(150×8)+

24

150×(8×9)

​

×

100

8

​

=1236

∴ Maturity Value =Rs 1236