Question

Mohan has a recurring deposit account in a bank for $2$ years at $6\%$ p.a. simple interest. If he gets Rs. $1200$ as interest at the time of maturity, find the monthly instalment (in Rs.).

Answer 1

Here, $n=$ the number of months for which the money is deposited $=2\times 12=24$
$r=6\%$, $I=$ Rs. $1,200$
Let the monthly instalments be Rs. $x$, then $P=$ Rs. $x$
Using the formula $S.I.=P\times \frac{n(n+1)}{2\times 12}\times \frac{r}{100}$
$1,200=\frac{x\times 24\times 25}{2\times 12}\times \frac{6}{100}$
$\frac{3}{2}x=1,200$
$\Rightarrow x=$ Rs. $800$
Hence monthly installment $=$ Rs. $800$