CHAPTER -2

BANKING (RECURRING DEPOSIT ACCOUNTS)

FORMULAE
Terms you should know.
x → Principal deposited every month.
n → Number of months for which principal is deposit.
R → Rate of interest
A / MV → Maturity value
x  ( n )( n + 1) R
Formula : Interest (I) = 
2  12 100
Maturity value = nx + I

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 TYPE 1
To Calculate Maturity Value
1. Arvind deposit ₹1600 per month in a cumulative account for 3 years at the rate of 9%
p.a. simple interest. Find the amount Arvind will get at the time of maturity.
Ans: ₹65,592
2. Mohan deposits ₹80 per month in a cumulative deposit account for six years. Find the
amount payable to him on maturity, if the rate of interest is 6% p.a.
Ans: ₹6811.20

3. Mrs. Goswami deposits ₹1000 every month in a recurring deposit account for 3 years
at 8% interest per annum. Find the matured value. Ans: ₹40,440

4. Sanjana opens a recurring deposit. Scheme & deposits ₹800 per month for a period of
2 years. If the rate of interest is 9% p.a. find the amount payable at the end of 2 years.
Ans: ₹21,000

5. Mr. Antao has a two year deposit account in a bank where the deposits ₹900 per
month. Find the amount received by him at the time of maturity, if the rate of interest
is 5% p.a. Ans. ₹22,725

6. Archana deposited ₹400 per month for 3 years in a bank’s recurring deposit Account.
If the bank pays interest at the rate of 11% pa.., find the amount she gets on maturity.
Ans. ₹16,842
7. Joseph has an account in recurring deposit scheme for 2 years. He deposits ₹1500. Per
month. If the rate of interest is 8% p.a., calculate the amount he would receive at the
time of maturity. Ans.₹39,000

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8. Mr Ramani has a three year recurring deposit account in the state bank. She deposits.
₹600 per month. Calculate the amount she would receive at the time of maturity if the
rate of interest is 9% p.a. Ans. ₹24,597

9. Find the maturity value of a recurring deposit scheme when Mr. Rao deposits ₹300
every month at 8% p.a. for 2 ½ years.
Ans. ₹9930

10. Saloni deposited ₹150 per month in her bank for eight months under the recurring
deposit scheme what will be the maturity value of her deposit, if the rate of interest is
8% per annum & the interest is calculated at the end of every month?
Ans. ₹1236
11. Kiran deposited ₹200 per month for 36 months in a bank’s recurring deposit account.
If the bank pays interest at the rate of 11% per annum, find the amount she gets on
maturity. Ans. ₹8421
12. Katrina opened a Recurring deposit account with a Nationalized Bank for a period of 2
years. If the bank pays interest at the rate of 6% per annum. And the monthly
installment is ₹1000, find the
(i) Interest earned in 2 years
(ii) Matured value Ans. (i) ₹1500 (ii) ₹25,500

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 TYPE 2
To calculate Rate of interest
1. Ahmed has a recurring deposit account in a bank. He deposits ₹2500 per month for 2
years. If he gets ₹66250 at the time of maturity, find.
i) The interest paid by the bank
ii) The rate of interest Ans: (i) ₹6,250, (ii) 10%

2. Shabana has a cumulative time deposit account in State Bank of India. She deposits
₹500 per month for a period of 4 years. If at the time of maturity she gets ₹28410 find
the rate of (simple) interest
Ans: 9%

3. David opened a recurring deposit Account in a bank and deposited ₹300 per month for
two years. If he received ₹7725 at the time of maturity, find the rate of interest per
annum. Ans. 7%

4. Mr. Gupta opened a recurring deposit account in a bank. He deposited ₹2500 per
month for two years. At the time of maturity he got ₹67,500 find.
(i) The total interest earned by Mr. Gupta
(ii) The rate of interest per annum Ans. (i) ₹7500 (ii)12%

5. Shahrukh opened a recurring deposit Account in a bank and deposited ₹800 per
month. For 1½ years. If he received ₹15,084 at the time of maturity, find the rate of
interest per annum. Ans. 6%

6. Rajesh deposits ₹1000 every month in a recurring deposited account for 3 years.
Calculate the rate of interest if the matured value is ₹40,440. Ans. 8%

7. Ravina deposits ₹600 per month in a recurring deposit scheme for 2 years. If she
receives ₹15,450 at the time of maturing calculate the rate of interest per annum.
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 Ans. 7%
8. Vineeta deposits ₹800 per month in a cumulative deposit account for 3 years. If the
amount payable at the time of maturity is ₹31,464, calculate the rate of interest
Ans. 6%
9. Mr. Madhavrao get’s ₹6455 at the end of one year when he deposits ₹500 per
month in a recurring deposit scheme. Find the rate of interest. Ans. 14%

10. Anuradha invests ₹500 every month in a recurring deposit scheme for 3 years. The
interest earned ₹2220. Find the rate of interest and the maturity value of the
investment. Ans: ₹20,220, 8%

11. Kishor opened a recurring deposited account in a bank and deposited ₹800 per
month for 1½ years if he received ₹15,084 at the time of maturity find the rate of
interest per annum
Ans: 6%

12. Salma deposited ₹200 per month for 3 years in a recurring deposit scheme. If she
received ₹8088 at the time of maturity of the account find the rate of interest per
annum.
Ans. 8%

13. Madhuri deposits ₹800 every month for 2½ years in a recurring deposit scheme the
interest earned is ₹2790. Calculate the rate of interest and the maturity value of the
invest. Ans: 9%, ₹26,790

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 TYPE 3
To calculate sum deposited / principal, monthly installment.
1. Mohan has recurring deposit account in a bank for 2 years at 6% p.a simple interest. If
he gets ₹1200 as interest at the time of maturity, find:
(i) The monthly installment
(ii) The amount at the time of monthly
Ans. (i) ₹800 (ii) ₹20400

2. Richard has a recurring deposit account in a post office for 3 years at 8% p.a. simple
interest if he gets ₹1998 as interest at the time of mature find:
a) Monthly installment
b) The amount of maturity. Ans: (i) ₹450 (ii) ₹18198.00

3. Mr. Britto deposits a certain sum of money each month in a Recurring Deposit
Account of a bank. If the rate of interest is 8% p.a. and Mr. Britto gets ₹8088 from the
bank after 3 years, find the value of has monthly installment.
Ans. ₹200
4. Zaheeda deposits a certain sum of moneys every month in a recurring deposit account
for 2 years. If she receives ₹37,875 at the time of maturity and the rate of interest is
5%, find the monthly deposit. Ans. ₹1500

5. Srinidhee deposits a certain sum of money every month in a recurring deposit scheme
for 5 years at 6% p.a. If the amount payable to her at the time of maturity of the
account is ₹55320m, find the monthly installment. Ans. ₹800

6. Mr. Rathod opened a recurring deposit account in a bank paying 12%. At the end of 2
years he received ₹6750. Calculate the monthly deposit. Ans. ₹250

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7. Supriya opened a cumulative deposit scheme with a bank for 3 years. If the rate of
interest is 8% p.a and the bank pays. ₹1776 as interest at the time of monthly. Find the
monthly deposit and the maturity value of the investment.
Ans: ₹400, ₹16176

8. Mr. Shetty deposits a certain sum of money each month in a recurring deposit account
of a bank if the rate of interest is 10% per annum and Mr. Shetty gets ₹17,340 from
the bank after four years find the value of his monthly installment.
Ans. ₹300

9. Mr Rathod opens a recurring deposit account opens a recurring deposit account in a

bank. If the rate of interest is 7% per annum & he receives ₹5150 from the bank after
two years calculate the value of his monthly deposit.
Ans. ₹200
10. Riz opens a recurring deposit account in a bank which gives simple interest of 8% p.a.
he received ₹20,220 from the bank after 3 years find the monthly deposit.
Ans. ₹500
11. Mr. R K Nair gets ₹6,455 at the end of one years at the rate of 14% per annum in a
recurring deposit account find the monthly installment.
Ans. ₹500
12. Mr. Richard has a recurring deposit account in a bank for 3 years at 7.5% p.a simple
interest if he gets ₹8325 as interest at the time of maturity, find
(i) The monthly deposit
(ii) The maturity value
Ans: (i) ₹200 (ii) ₹80325

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 TYPE 4
To Calculate ‘n’

1. Beena has a C.D account of ₹400 per month at 10% p.a. simple interest. If she gets
₹30100 at the time of maturity, find the total time for which the account was held.
Ans. 5 years
2. Monica has a CD Account in the Union Bank of India and deposited ₹600 per
month. If the maturity value of this account is ₹24930 and the rate of interest is 10%
p.a. find the time (in years) for which the account was held. Ans.3years

3. Jainil opens a recurring deposit account in a bank of ₹400 per month. How many
installments does he have to pay to get a maturity of ₹8560 if the bank pays a
simple interest of 8% p.a.?
Ans. 20
4. Puneet has a recurring deposit account in a bank and deposit ₹400 per month. If he
receives ₹10,100 at the time of maturity, find the time for which the account is held
if the rate of interest is 5% p.a
Ans. 24 month ,2yrs

5. Arnav deposits ₹500 every month at 12% p.a. in a bank in a recurring deposit
scheme. The bank pays ₹5275 on maturity find the time for which the account is
held.
Ans. 10 months

6. Ritika deposits ₹200 every month in a recurring deposit scheme at 8% p.a. If she gets
₹1648 as the maturity amount, find the period for which the account is held.
Ans. 8 months

7. Sonya deposits ₹300 per month at 8% p.a. in a bank and receives ₹4740 on maturity
of the account. Find out the total time for which the recurring deposit account is
held. Ans. N = 15, One year 3 months
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8. Arnav deposits ₹500 every month at 12% p.a. in a bank in a recurring deposit
scheme. The bank pays ₹5275 on maturity. Find the time for which the account is
held. Ans. N = 10, Ten month

9. A recurring deposit account of ₹1,200 per month has a maturity value of

₹12,440. If the rate of interest is 8% and the interest is calculated at the end of every
month; find the time (in months) of this Recurring Deposit Account.
Ans. N = 10 month

10. Mr. Gulati has a Recurring Deposit Account of ₹300 per month. If the rate of interest
is 12% and the maturity value of this account is ₹8,100; find the time (in years) of
this Recurring Deposit Account. Ans. M = 24 month, Two years

11. The maturity value of a R.D. Account is ₹16,176. If the monthly instalment is ₹400
and the rate of interest is 8%; find the time (period) of this R.D. Account.
Ans. N = 36 Months, 3 years.
12. Mr. Motasha opens a recurring deposit account of ₹600 per month at 12% p.a. if he
is paid ₹7668 as maturity amount, how many installments does he need to pay?
Ans.12

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