ICSE Guess > ICSE/ISC eBooks > Class X > Maths by Mr. M. P. Keshari

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Example - 2. Mr. Kumar deposits Rs.600 per month in a recurring deposite account for 12 months. Find the amount he will receive at the lime of maturity at the rate of 6% per annum.

Solution : In this account the amount Rs.600 deposited in 1st month will remain in the bank for 12 month and it will earn interest for 12 months. The amount Rs.600 deposited in the 2nd month will earn interest for 11 months and so on.

Hence
Rs.600 for 12 months = Rs.7200 for 1 month
Rs.600 for 11 months = Rs.6600 for 1 month
Rs.600 for 10 months = Rs.6000 for 1 month
Rs.600 for 9 months = Rs.5400 for 1 month
Rs.600 for 8 months = Rs.4800 for 1 month
Rs.600 for 7 months = Rs.4200 for 1 month
Rs.600 for 6 months = Rs.3600 for 1 month
Rs.600 for 5 months = Rs.3000 for 1 month
Rs.600 for 4 months = Rs.2400 for 1 month
Rs.600 for 3 months = Rs.1800 for 1 month
Rs.600 for 2 months = Rs.1200 for 1 month
Rs.600 for 1 months = Rs.600 for 1 month

Interest of Rs.46800 for 1 month at 6% p.a.

= Rs.46800 X 1/12 X 6/100

= Rs.234

Total amount on maturity

= Rs. (600 X 12) + Rs.234

= Rs.7200 + Rs.234

= Rs.7434