Question

Mr. RK Nair gets Rs.6455 at the end of one year at the rate of 14% per annum in a recurring deposit account. Find the monthly installment.

Answer 1

According to the question,

Maturity value$=6455$

$r=14\%p.a$

$n=1year=12months$

$\therefore P\times n+P\times \frac{n(n+1)}{2\times 12}\times \frac{r}{100}=6455$ where $p$ is monthly installment.

$\therefore P\times 12+P\times \frac{12(12+1)}{2\times 12}\times \frac{14}{100}=6455$

$\therefore P(12+\frac{91}{100})=6455$

$\therefore P=\frac{6455\times 100}{1200+91}=\frac{6455\times 100}{1291}=500$

$\therefore$Monthly installment is $Rs.500$