Question

Aparna has a cumulative deposit in Union bank for 4 years at 9% rate of interest per annum. She receives ₹ 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 ₹ P

Given that number of years = 4 ; Hence Number of months = 4 x 12 = 48 months

Total Amount deposited = ₹ 48P

Given Rate of Interest = 9%

Interest Earned = P $\times$ $\frac{n\times (n+1)}{2\times 12}$ $\times$ $\frac{r}{100}$

= P $\times$ $\frac{48\times (48+1)}{2\times 12}$ $\times$ $\frac{11}{100}$

= 8.82P

Amount on maturity = Total Money Deposited + Interest

Given Maturity Amount = ₹ 51,607.50

Hence ; 48 P + 8.82 P = ₹ 51,607.50

P = ₹ 908.26