₹ P is deposited for n number of months in a recurring deposit account which pays interest at the rate of r % per annum. The nature and time of interest calculated is ______.

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₹ P is deposited for n number of months in a recurring deposit account which pays interest at the rate of r % per annum. The nature and time of interest calculated is simple interest for one month. Explanation: In standard recurring-deposit problems, each monthly instalment earns interest as simple interest for the months it remains in the account. Summing those monthly simple-interest amounts gives the usual formula `I = P xx [n(n + 1)/(2 xx 12)] xx (r/100)` So, the bank treats each instalment as earning simple interest on a one‑month basis i.e., interest computed monthly.

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