Question

Mr. Bajaj needs Rs 30,000 after 2 years. What least money (in multiple of Rs 5) must he deposit every month in a recurring deposit account to get required money at the end of 2 years, the rate of interest being 8% p.a. ?

Answer 1

Let instalment per month = P
No of months n=24
Rate of interest r = 8% p.a.

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

$=P\times 2\frac{24(24+1)}{2\times 12}\times \frac{8}{100}$

$=P\times \frac{600}{24}\times \frac{8}{100}=2P$

maturity value $=(P\times 24)+2P=Rs.26P$

Given maturity value = Rs. 30,000
Then

$26P=30,000$

$P=\frac{30,000}{26}$

$P=Rs.1153.84=Rs.1154$

Answer:- Rs.1154