Question

Ashish deposits a certain sum of money every month in a Recurring Deposit Account for a period of 12 months. If the bank pays interest at the rate of 11% p.a. and Ashish gets Rs12,715 as the maturity value of this account, what sum of money did he pay every month?

• A. Rs 1000
• B. Rs 12,715
• C. Rs 750
• D. Rs 1050

Answer 1

The correct option is A Rs 1000

Let Installment per month(P) = Rs y

Number of months(n) = 12

Rate of interest(r)= 11%p.a.

$S.I.=P\times \frac{n(n+1)}{2\times 12}\times \frac{r}{100}$
$=y\times \frac{12(12+1)}{2\times 12}\times \frac{11}{100}$
$=y\times \frac{156}{24}\times \frac{11}{100}=Rs0.715y$

Maturity value=$Rs\left(12y\right)+Rs\left(0.715\right)y=Rs12.715y$

Given maturity value= Rs12,715

Then $Rs12.715y=Rs12,715$

$\Rightarrow y=\frac{12715}{12.715}=Rs1000$