Same chapter1 markDifficulty: Easy
In a recurring deposit of ₹P per month for n months, the total sum deposited is:
Banking
2 marksDifficulty: Easy
State two differences between a recurring deposit account and a savings bank account.
Original Khojo Papers practice question — not from a past board paper.
Answer
In a recurring deposit a fixed sum must be paid in every month for an agreed number of months, and the money cannot normally be withdrawn until maturity; in a savings account deposits are irregular and money can be withdrawn at any time. A recurring deposit also pays a higher rate of interest than a savings account.
No citable source has been recorded for this record. Treat it as practice material, not as fact.
Explanation
The higher rate is the return for giving up ready access to the money.
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:
Banking
Same chapter2 marksDifficulty: Easy
Rahul deposits ₹800 per month in a recurring deposit account for 18 months. Find the total sum he deposits.
Banking
Same chapter2 marksDifficulty: Easy
Why is the interest on a recurring deposit calculated on n(n+1)/2 instalments rather than on n instalments?
Banking
Same chapter2 marksDifficulty: Easy
Anita deposits ₹800 per month in a recurring deposit account for 18 months at 8% per annum. Find the interest she earns.
Banking
Same chapter4 marksDifficulty: Medium
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.
Banking