Question

Mr sen gets Rs $6455$ at the end of one year at the rate of $14$% per annum in a recurring deposit account. Find the monthly instalment.

• A. $500$
• B. $600$
• C. $700$
• D. None of the above

Answer 1

The correct option is A $500$

Let the monthly installment be $P$

Given, maturity value $=6455$Rs, $n=12$ months, $r=14$

Interest $=\frac{Pn(n+1)r}{2400}$

$=\frac{P\times 12\times 13\times 14}{2400}$

$=\frac{91P}{100}$

Therefore, amount $=$ Rs. $(12P+\frac{91P}{100})=\frac{1291P}{100}$

According to the problem, we have

$\frac{1291P}{100}=6455$

$\therefore P=500$

Hence, the required monthly installment is Rs. $500$.