Class Notes

Banking
Grade 10
 Topics to Be Covered

1 1. Introduction

2. Accounts
2 2.1 Types of accounts
2.2 Recurring deposit
 1. Introduction

Bank is an institution that carries on the business of

taking deposits and lending money.
Some of the main functions of a bank are:
❖ Receiving money from depositors
❖ Lending money on demand
❖ Providing other useful services to society
The business of receiving, safeguarding and lending
of money is called banking.

Deposits Advances loans

money

Withdrawals Repayment
of loans
Saving
(Depositor/ Borrowing
Bank
Lender)

Interest Interest
payments payments
(Low Rate) (High Rate)
 2. Accounts

2.1 Types of accounts

Savings deposit

Current deposit Recurring deposit 

Fixed deposit

2.2 Recurring deposit

Your Amount to RD
money every month

RD Account = 
Transferred back at the end of Deposited
the tenure amount + Interest

Maturity
value
 2. Accounts

Let, 𝑃 = Principal deposited every month

𝑛 = Number of months
𝑟 = Rate of interest per year

2.2.1 Interest

2.2.2 Maturity Value

 2. Accounts

2.2.3 Types of Questions

Type 1: When 𝑃, 𝑛 and 𝑟 are given

Substitute 𝑃, 𝑛 and 𝑟 and find 𝐼.
Substitute 𝑃, 𝑛 and 𝐼 and find 𝑀𝑉.

Type 2: When 𝑀𝑉, 𝑛 and 𝑟 are given

1st method: Assume 𝑃 to be ₹100 and calculate
the 𝑀𝑉. Apply unitary method and find 𝑃 for the
given 𝑀𝑉.
2nd method: Assume 𝑃 as ₹𝑥 and proceed to
find 𝑥.

Type 3: When 𝑃, 𝑟 and 𝑀𝑉 are given

Let number of months be 𝑥.
Find the interest (𝐼) in terms of 𝑥.
Substitute 𝐼 in the 𝑀𝑉 formula to get the value
of 𝑥.

Type 4: When 𝑃, 𝑛 and 𝑀𝑉 are given

Substitute 𝑃, 𝑛 and 𝑀𝑉 in the 𝑀𝑉 formula and
find 𝐼.
Substitute 𝐼, 𝑃 and 𝑁 in the interest formula and
find 𝑟.
Mind Map
Banking

Accounts

Recurring
Deposit

Interest

Maturity
Value

Types of
Questions