Skip to content
← Business Mathematics and Basic Statistics

Business Mathematics and Basic Statistics · Class 12 Commerce

Ch 1Banking — Fixed and Recurring Deposits — Class 12 Business Mathematics and Basic Statistics, concept-first.

A Fixed Deposit (FD) is a lump-sum amount deposited with a bank for a fixed period at a fixed rate of interest, decided at the time of deposit. Unlike a savings account, the money cannot ordinarily be withdrawn before the agreed period ends; in exchange, the bank pays a rate of interest that is usually higher than a sa…

11

Q&A

3

Concepts

~4m

Unit weightage

Start learning — read this chapter →

Key concepts

Hover a concept to preview it and jump to its most relevant Q&A.

Fixed Deposit Maturity Value

A Fixed Deposit's maturity value follows the general compound-interest formula , where is the number of times per year the bank compounds interest (most commonly , quarterly, for Indian bank FDs).

Most relevant Q&A

Start with this concept →

Chapter contents

The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.

1

Fixed Deposits — Concept and Maturity Value

A Fixed Deposit (FD) is a lump-sum amount deposited with a bank for a fixed period at a fixed rate of interest, decided at the time of deposit.

2

Recurring Deposits — Concept and the Standard Maturity Value Formula

A Recurring Deposit (RD) works differently from an FD: instead of depositing one lump sum, the depositor pays a fixed amount every month for an agreed number of months, and the bank pays interest on e…

3

Finding an Unknown Rate, Tenure or Instalment in FD/RD

Both the FD formula and the RD formula relate several quantities to one another, so given any set of them except one, the missing quantity can be found by rearranging the formula.

Exercises

+Show 5 questions5 questions
  1. Q7Find the maturity value of a Fixed Deposit of ₹50,000 for 3 years at 10% per annum, compounded yearly.Free
  2. Q8A Fixed Deposit of ₹10,000, compounded yearly for 2 years, matures to ₹14,400. Find the rate of interest per annum.Free
  3. Q9Find the maturity value of a Recurring Deposit of ₹200 per month for 24 months at 6% per annum.Preview
  4. Q10What monthly instalment should be deposited in a Recurring Deposit account for 18 months at 8% per annum to receive a maturity value of ₹19,…Preview
  5. Q11Which earns more compound interest over 1 year: depositing ₹60,000 as a Fixed Deposit at 8% per annum compounded quarterly, or depositing th…Preview

More questions

+Show 6 questions6 questions
  1. Example 1Find the maturity value of a Fixed Deposit of ₹40,000 for 1 year at 8% per annum, compounded quarterly.Free
  2. Example 2A bank pays 10% per annum on Fixed Deposits, compounded half-yearly. Find the maturity value of a deposit of ₹25,000 held for 1 year 6 month…Free
  3. Example 3Mr. Sen deposits ₹500 every month in a Recurring Deposit account for 12 months at 8% per annum. Find the maturity value and the interest ear…Preview
  4. Example 4What monthly instalment should Anita deposit in a Recurring Deposit account for 24 months at 9% per annum, so that she receives a maturity v…Preview
  5. Example 5Rahim deposits ₹800 every month in a Recurring Deposit account for 12 months and receives a maturity value of ₹10,120. Find the rate of inte…Preview
  6. Example 6A Recurring Deposit of ₹100 per month at 8% per annum matures to ₹2,600. Find the number of monthly instalments.Preview