wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Ms. Vasundhra Mehta has a recurring deposit account in a bank for 4 years at 10% p.a. She gets Rs. 6370 as the interest on maturity. Find:

(i) the monthly instalment.

(ii) the maturity value.​


Open in App
Solution

Step 1: Given data:

Interest received on maturity, I=Rs.6370

Rate of Interest, R=10%p.a.

Number of years, n=4

Convert years into months.

n=4=4×121year=12months=48So,n=48months

Step 2: Calculate the monthly instalment:

Let the monthly instalment be Rs.P.

Then,

Interestrecieved=P×nn+12×12×R1006370=P×4848+12×12×101006370=P×48×492×12×101006370=P×48×492×12×1106370=P×495P=6370×549P=Rs.650

Hence, the monthly instalment is Rs.650.

Step 3: Calculate the maturity value:

Maturityvalue=[1+n+1R2400]×n×P=[1+48+1×102400]×48×650=[1+49×102400]×48×650=[1+4902400]×48×650=[1+4902400]×31200=[2400+4902400]×31200=[28902400]×31200=37570Maturityvalue=Rs.37570

Hence, the monthly instalment is Rs.650 and the maturity value is Rs.37570.


flag
Suggest Corrections
thumbs-up
2
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Importance of Planning
BUSINESS STUDIES
Watch in App
Join BYJU'S Learning Program
CrossIcon