Multiple choice

A deposit in which the investor deposits a certain sum every month and gets a sum comprising both the principal and the interest at maturity is known as

  1. Recurring or Cumulative deposit

  2. Savings deposit

  3. Fixed deposit

  4. Reinvestment deposit

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A Recurring Deposit (RD) allows an investor to deposit a fixed amount every month, accumulating interest over time until maturity.