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 $12,715$ rupees as the maturity value of the account, what sum of money did he pay every month?

Answer 1

Let installment per month ${=}^{\prime }{P}^{\prime }=y$.

$n=12$

$R=11$%

$S.I=P\times \frac{n(n+1)}{2\times 12}\times \frac{r}{100}$

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

$=y\times \frac{156}{24}\times \frac{11}{100}$

$=0.715y$

$MV=(y\times 12)+0.715y$

$=12.715y$

ATP,

$12.715y=12715$

$\therefore$ $y=Rs.1000$

Hence monthly installment $=Rs.1000$