Question

Mr. Gulati has a Recurring Deposit Account of Rs. $300$ per month. If the rate of interest is $12\%$ and the maturity value of this account is Rs. $8,100$, find the time (in years) of this Recurring Deposit Account.

Answer 1

$P=300$ per month , $R=12\%$ , $MV=1800$

Maturity Value $=(1+\frac{(n+1)\times R}{2400})\times n\times P$

where $n$ is the time in months.

$⟹8100=(1+\frac{(n+1)\times 12}{2400})\times n\times \left(300\right)$

$⟹27=n+\frac{(n^2+n)}{200}$

$⟹n^2+201n-5400=0$

$⟹(n-24)(n+225)=0$

$⟹n\ne -225$

$\therefore n=24$ months $=2$years