Question

A man has a Recurring Deposit Account in a bank for 3½ years. If the rate of interest is 12% per annum and the man gets ₹ 10,206 on maturity, find the value of monthly installments.

• A. ₹ 1806
• B. ₹ 510
• C. ₹ 200
• D. ₹ 10,206

Answer 1

The correct option is C

₹ 200

Let Installment per month(P) = ₹ P

Number of months(n) = 42

Amount Deposited = 42 P

Rate of interest(r)= 12% p.a.
$S.I.=P\times \frac{n(n+1)}{2\times 12}\times \frac{r}{100}$

$=P\times \frac{42(42+1)}{2\times 12}\times \frac{12}{100}$

$=P\times \frac{1806}{24}\times \frac{12}{100}=₹9.03P$

Maturity Value = Amount Deposited + Interest

₹ 42P + ₹ 9.03P

= ₹ 51.03P

Given maturity value= ₹ 10,206

Then ₹ 51.03P = ₹ 10,206

$P$ = $\frac{10206}{51.03}$ = ₹ 200