 Hello and welcome to the session. In this session we are going to discuss the following question and the question says that, Peter deposits $300 per month in a Reckoning Deposit account for 2 years. If the rate of interest is 10% per year, calculate the amount that Peter will receive at the end of 2 years, that is, at the time of maturity where interest is being calculated at the end of every month. The formula for simple interest is P into R into T upon 100 where P is the principal, R is the rate of interest, T is the time. With this key idea, let us proceed with the solution. According to the question, we need to find the amount at the time of maturity if Peter deposits $300 per month in a Reckoning Deposit account for 2 years and we are given the rate of interest is 10% per year. So here, let P be the installment per month which is given to us as $300. Let N be equal to the number of months for which the recurring deposit account is open, that is equal to 2 into 12 which is equal to 24 months. Let R be equal to the rate of interest per annum which is given to us as 10% per annum. So rate of interest per month is equal to R by 12% which is equal to 10 upon 12% per month and the time T is equal to 1 month. Now as Peter deposits $300 per month, that means he deposits $300 in the first month for 24 months. So the principal for first month is equal to 300 into 24. Now he deposits $300 in the second month for 23 months. So the principal for the second month is equal to 300 into 23. Moving on, in this way he deposits $300 in the last month for 1 month. So the principal for the last month is equal to 300 into 1. So the equivalent principal for 1 month is equal to 300 into 24 plus 300 into 23 and so on plus 300 into 1. This is equal to 300 into 24 plus 23 plus so on plus 1 which is equal to 300 into 24 into 24 plus 1 upon 2. As we know 1 plus 2 plus 3 plus so on plus n is equal to n into n plus 1 by 2. So now to calculate the interest per month for a recurring deposit we use the formula simple interest is equal to P into R into T upon 100. So simple interest is equal to 300 into 24 into 24 plus 1 upon 2 into 10 by 12 into 1 upon 100. 300 into 24 into 24 plus 1 by 2 is the principal for 1 month. 10 by 12 is the rate of interest per month and time is 1 month. So this is equal to 300 into 24 into 25 into 10 upon 2 into 12 into 100. So here 12 into 2 is 24 this will be equal to 3 into 25 into 10 which is equal to 750 dollars. Now the total deposit during 24 months is equal to 300 into 24 which is equal to 7200 dollars. So the amount on maturity is equal to 7200 plus 750 dollars that is equal to 7,950 dollars which is our answer. This completes our session. Hope you enjoyed the session.