Mr. Sharma deposited Rs 500 every month in a cumulative deposit account for 2 years. If the bank pays interest at the rate of 7% per annum, then the amount he gets on maturity is

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Deposit (P) = Rs 500 per month Period (n) = 2 years = 24 months Rate (r) = 7% p.a. ∴ Interest = `("P" xx "n" xx ("n" + 1))/(2 xx 12) xx "r"/(100) = (500 xx 24 xx 25 xx 7)/(2 xx 12 xx 100)` = ₹875 ∴ Maturity value = P x 24 + Interest = ₹500 x 24 + 875 = ₹12000 x 875 = ₹12875.

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