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Question

Mrs. Rita deposits ₹1600 every month in recurring deposit account at 9% p.a. simple interest. She receives ₹65,592 at the time of maturity. What is the total time for which the account was held?


A

16 months

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B

24 months

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C

47 months

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D

36 months

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Solution

The correct option is D

36 months


Let the time of the recurring deposit in month be n

Monthly installment = ₹1600

Amount Deposited = 1600 x n = 1600n

Rate of Interest = 9%

Interest = P × n×(n+1)2× 12 × r100

= 1600 × n×(n+1)2× 12 × 9100

= 6 ×n × (n+1)

= 6 n2 + 6 n

Given Maturity Value = 65592

Maturity Value = Amount Deposited + Interest

65592 = 1600n + 6 n2 + 6 n

65592 = 1606n + 6 n2

6 n2 + 1606 n - 65592 = 0

(n-36)(3n+911) = 0

n = 36 and n = -911/3 (neglecting -911/3 as n cannot be negative as it time period)

Therefore, the time for which he held the account = 36 months or 3 years.


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