Question

Mohan has a recurring deposit account in a bank for 2 years at 6% p.a. simple interst. If he gets rs. 1200 as interst at the time of maturity. find:
(i) The monthly installment
(ii) the amount of maturity.

Answer 1

we know the formula for simple interest;

$S.I=\frac{P\times T\times R}{100}$

let the amount he invested be $Rs.P$.

$1200=\frac{p\times 2\times 6}{100}$

$P=10000$

1. monthly installment:

$=\frac{10000\times \frac{1}{12}\times 6}{100}=50$

hence the monthly installment is $Rs.50$

2. amount of maturity:

$=10000+1200=11200$

its just the extra amount obtained other than his deposit that is $Rs.11200$