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find mv amount and rate

find mv amount and rate. Recap. To find simple interest we use the following formula:. I =. Number of years. Interest. Principal. Rate of interest. Amount = Principal + Interest. Fixed Deposits and Recurring Deposits

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find mv amount and rate

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  1. find mv amount and rate

  2. Recap • To find simple interest we use the following formula: I = Number of years Interest Principal Rate of interest Amount = Principal + Interest

  3. Fixed Deposits and Recurring Deposits Banks, post offices and many other financial institutions accept deposits from public at varying rates of interest. People save in these institutions to get regular periodical income. Different saving schemes are offered by these financial institutions. Few of those schemes are (i) Fixed Deposit and (ii) Recurring Deposit 1. Fixed Deposit In Fixed Deposit (F.D), people invest a quantum of money for specific periods. The interest on Fixed Deposit is calculated using simple interest method Where P is the monthly installment , r is the rate of interest , n is number of years of deposit Amount = Principal + Interest

  4. 2. Recurring Deposit In Recurring Deposit (R.D.), the depositor deposit a fixed amount regularly every month over a period of years in the bank or in the post office. The bank or post office repays the total amount deposited together with the interest at the end of the period. The interest on Recurring Deposit is calculated using simple interest method. Where P is the monthly installment, r is the rate of interest , n is number of months of installment. Total deposit made = P x n Total Amount due at maturity (A) = Total deposit made + Interest

  5. Example 1: Tharun makes a deposit of Rupees two lakhs in a bank for 5 years. If the rate of interest is 8% per annum, find the maturity value. Solution Given: Principal deposited(P) = Rs 2,00,000, n = 5 years, r = 8% P. A Type of deposit : fixed deposit To Find : Maturity value(A) = Rs 8000 Maturity value(A) = Principal + interest =2,00,000 + 80,000 = Rs 2,80,000 Ans:- Maturity value(A) after 5 years is Rs 2,80,000

  6. Example 2:- Vaideesh deposits 500 at the beginning of every month for 5 years in a post office. If the rate of interest is 7.5%, find the amount he will receive at the end of 5 years. Solution Given:-Amount deposited every month, P = Rs 500, n= 5 years , r=7.5% Type of deposit : recurring deposit To Find :- Amount(A) n has to be in number of months, therefore n = 5 years = 5 × 12 = 60 months Rate of interest, r = 7.5 Total deposit made = P x n = 500 × 60 = Rs 30,000 Period for recurring deposit(N)

  7. = Rs 5,718.75 Total Amount due at maturity (A) = Total deposit made + Interest = 30,000 + 5,718.75 = Rs 35,718.75 Ans:- Total Amount due at maturity is Rs 35,718.75

  8. Example 3:- Vishal deposited 200 per month for 5 years in a recurring deposit account in a post office. If he received Rs 13,830 ,Find the rate of interest. Solution Given:- Maturity Amount(A) = Rs 13,830, P = 200, n = 5 years Type of deposit : Recurring deposit To Find:- Rate of interest (r) n has to be in number of months, therefore n = 5 years = 5 × 12 = 60 months Amount Deposited = P x n = 200 × 60 = Rs 12000

  9. = 305r Total Amount due at maturity (A) = Total deposit made + Interest 13830 = 12000 + 305r 13830 – 12000 = 305 x r 1830 = 305 x r Ans:- Rate of interest (r) = 6%

  10. TRY THESE • Ponmani makes a fixed deposit of Rs 25,000 in a bank for 2 years. If the • rate of interest is 4% per annum, find the maturity value. • 2. Imran deposits Rs 400 per month in a post office as R.D. for 2 years. If the • rate of interest is 12%, find the amount he will receive at the end of 2 years.

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