Question

Mr Britto deposits a certain sum of money each month in a Recurring Deposit Account of a bank. If the rate of interest is 8% per annum and Mr Britto gets ₹ 8088 from the bank after 3 years, find the value of his monthly installment.

• A. ₹ 200
• B. ₹ 100
• C. ₹ 350
• D. ₹ 500

Answer 1

The correct option is A

₹ 200

Let the value of the monthly installment be Rs P.
Since rate of interest (r) = 8%
Number of months, $n=3\times 12=36$
Maturity value (M.V.) = ₹ 8088
$\therefore M.V.=(P\times n)+P\times \frac{n(n+1)}{2}\frac{r}{12\times 100}$
$\Rightarrow 8088=P\times 36+P\times \frac{36\times 37}{2}\times \frac{8}{12\times 100}$
$\Rightarrow 8088=36P+4.44P$
$\Rightarrow 8088=40.44P$
$\Rightarrow P=\frac{8088}{40.44}=200$
Thus, the value of his monthly installment is ₹ 200.