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

Answer 1

$S.I.=\frac{PTR}{100}$

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

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

$S.I.=0.715P$

Maturity value$=(P\times 12)+0.715P$

$12,715=12.715P$

$\therefore P=\frac{12,715}{12.715}$

$\Rightarrow P=Rs.1000$