Question

Aparna has a cumulative deposit in Union bank for 4 years at 9% rate of interest per annum. She receives Rs 51,607.50 at the time of maturity. Find her monthly installment.

• A. Rs 700
• B. Rs 908.26
• C. Rs 800.78
• D. Rs 708.36

Answer 1

The correct option is B

Rs 908.26

Let us suppose that the monthly installment is Rs x, then the total amount deposited by Aparna = Rs 48x

Equivalent principal for 1 month = Rs x $\times$ $\frac{48(48+1)}{2}$ = Rs 1176x

Interest on Rs 1176x for 1 month at the rate of 9% p.a.:

= Rs 1176x $\times$ $\frac{1}{12}$ $\times$ $\frac{9}{100}$ = $\frac{882}{100}$ x

Amount on maturity = Rs 48x + Rs $\frac{882}{100}$ x = $\frac{5682}{100}$x

$\Rightarrow$ $\frac{5682}{100}$x = Rs 51607.50 $\Rightarrow$ x = Rs 908.26