 Hello and welcome to the session. In this session we will discuss different types of accounts. First we have the savings bank account. These accounts let customers set aside a portion of their income and also form their savings in the form of interest. In the savings bank account a customer may deposit or withdraw money anytime at his own convenience. These accounts can be opened individually or jointly with others. Let us now check out the procedure for calculating the interest. For this our step 1 would be to write down the minimum balance between the 10th day and the last day of the month and that too in a multiple of 10. After writing down the minimum balances our next step would be to add all these balances so obtained then after doing this in the next step we find the simple interest on this sum that we have obtained in step 2 for one month. And we know that the formula to calculate the simple interest is given as P into R into T this whole upon 100 where this P is the principle R is the rate of interest T is the time. No interest would be paid for the month in which the account is closed. Moreover if the minimum balance in a month is less than $5 or say $5 then no interest would be paid in that month also. Also if the total interest is less than one then we neglect it take it as zero. Next type of account that we have is a current account which type of an account is maintained by the businessman, companies, corporations, institutions etc. And in such an account no interest is paid for the money kept in the account. A current account holder may use the extra money a certain limit which would be fixed by the bank depending upon the reliability and financial position of the concerned party. And on this extra money that the account holder uses the bank would charge interest. Also there are no restrictions on the number of withdrawals from this account. Next we have fixed deposit account this is a type of savings account where the deposits are made for a specified period of time those deposits pay out a fixed rate of interest. Next we have a recurring or cumulative deposit account. In such an account the depositor deposits a fixed amount every month for a certain period and at the expiry of this period the depositor gets the amount which was deposited by him together with an interest. And this rate of interest is revised from time to time. Next we discuss how to find the maturity value of a recurring deposit account. Suppose that P dollars are deposited by a bank every month for n months in a bank then from this we can say that the first deposit of P dollars is with the bank for n months. Then in the same way the second deposit of P dollars which would be deposited in the next month is with the bank for n minus 1 months and so on. This would be the case for the rest of the deposits in the successive months. And like this the last deposit of P dollars is with the bank for only 1 month. So now the equivalent principle of a recurring deposit of P dollars per month for n months would be equal to P into n that is in the first deposit P dollars are deposited in the bank and these P dollars would remain with the bank for n number of months. So after the first deposit the total amount would be P into n that is the amount deposited into the number of months for which that money remains with the bank plus P into n minus 1 after the first deposit. Again P dollars would be deposited in the bank and that would remain with the bank for n minus 1 months. So total money in this case would be P into n minus 1 plus and so on plus P into 1 dollars. And so further this is equal to P into n plus n minus 1 plus and so on plus 1. Now the sum of the first and natural numbers that is 1 plus 2 plus 3 plus and so on up to n is equal to n into n plus 1 the whole upon 2. So this formula could be applied here and so we get that this is equal to P into n into n plus 1 the whole and this whole upon 2 dollars. This would be the equivalent principle of a recurring deposit of P dollars per month for n months. Now we have that P dollars are deposited in the bank per month for n months. Then in this case the equivalent principle is this time T would be equal to 1 month as the money is deposited every month and let the rate of interest that is capital R be equal to R percent per annum. And so this would be equal to R upon 12 percent per month and so the simple interest in this case would be equal to the principle that is P into n into n plus 1 the whole. This whole upon 2 into the time that is 1 into the rate of interest which is R upon 12 and this whole upon 100. Or we can write this as the simple interest S i is equal to P into n into n plus 1 the whole into R this whole upon 2 into 12 into 100 dollars this is the simple interest. The maturity value of the deposits would be given by adding the simple interest so obtained with the total deposit during. So in this way we can find out the maturity value of the recurring deposit account. So this completes the session hope you understood the different types of accounts.