Checking progress account…
Opening your study space…
Checking progress account…
Opening your study space…
Lesson
Unlike Fixed Deposits, where the entire amount earns interest for the full period, an RD has multiple deposits that enter the account every month. This means the first deposit earns interest for the maximum period, the second for one month less, the third for two months less, and so on. To simplify this, banks use the formula n(n+1)/24, which represents the cumulative number of months for which all installments earn interest.
Learning objectives
Understand maturity value in the Recurring Deposit chapter.
Connect the idea with formulas, examples, and exam-style questions.
Use flashcards, notes, MCQs, and LAQs to check readiness.
Lesson
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Notes
Review the compact notes before moving into recall.
Open notesPractice
Choose one small set. The full bank opens only inside the practice session.
In this chapter
Now on Maturity Value. Next up: Inverse RD Problems.
Lesson progress
Save this lesson when done. Next: Inverse RD Problems.
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