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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. ?

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Solution

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


S.I = P×n(n+1)2×12×r100

=P×224(24+1)2×12×8100

=P×60024×8100=2P

maturity value =(P×24)+2P=Rs.26P

Given maturity value = Rs. 30,000
Then

26P=30,000

P=30,00026

P=Rs.1153.84=Rs.1154

Answer:- Rs.1154


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