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?
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.