Same chapter2 marksDifficulty: Easy
State two differences between a recurring deposit account and a savings bank account.
Banking
1 markDifficulty: Easy
In a recurring deposit of ₹P per month for n months, the total sum deposited is:
- aP × n(n+1)/2
- bP × n
- cP × n/12
- dP × (n+1)
Original Khojo Papers practice question — not from a past board paper.
Answer
P × n
No citable source has been recorded for this record. Treat it as practice material, not as fact.
Explanation
The sum deposited is simply the instalment multiplied by the number of instalments; n(n+1)/2 belongs to the interest calculation, not to the sum deposited.
Related questions
From the same topic and chapter, at a similar level.
Same chapter1 markDifficulty: Easy
The maturity value of a recurring deposit account is:
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Same chapter2 marksDifficulty: Easy
Rahul deposits ₹800 per month in a recurring deposit account for 18 months. Find the total sum he deposits.
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Why is the interest on a recurring deposit calculated on n(n+1)/2 instalments rather than on n instalments?
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Anita deposits ₹800 per month in a recurring deposit account for 18 months at 8% per annum. Find the interest she earns.
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Anita deposits ₹1,000 per month in a recurring deposit account for 2 years at 8% per annum. Find the interest she earns and the maturity value of the account.
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