Question

Ashima has a Cumulative or Recurring Deposit Account in a bank for 5 years at 9% p.a. At the time of maturity, she gets Rs 51,607.50. Find the monthly instalment.
[3 MARKS]

Answer 1

Formula: 1 Mark
Steps: 1 Mark
Answer: 1 Mark

Suppose the monthly instalment is Rs $x$, then total amount deposited by Ashima = Rs $60x$
Equivalent principal for 1 month = Monthly instalment $\times \frac{n(n+1)}{2}=Rsx\times \frac{60(60+1)}{2}=Rs1,830x$
Interest on Rs 1830 x for 1 month at the rate of 9% $p.a.=\frac{P\times R\times T}{100}$
$=Rs1830x\times \frac{1}{12}\times \frac{9}{100}=Rs\frac{549}{40}x$
Aomunt received on maturity = Total amount deposited + Interest $=Rs60x+Rs\frac{549}{40}x=Rs\frac{2949}{40}x$
$\frac{2949}{40}x=51607.50\Rightarrow x=Rs700$
$\therefore$ The monthly instalment = Rs 700