Question

Sakshi has a recurring deposit account in a bank for 5 years at 9% per annum simple interest. If she gets ₹51607.50 at the time of maturity, what was her monthly instalment?

• A. ₹900
• B. ₹560
• C. ₹700
• D. ₹600

Answer 1

The correct option is C

₹700

Let the monthly installment be P

Number of months = 5 x 12 = 60

Money deposited in 60 months = 60P

Rate of Interest = 9%

Interest = P $\times$ $\frac{60\times (60+1)}{2\times 12}$ $\times$ $\frac{r}{100}$

= P $\times$ $\frac{60\times (60+1)}{2\times 12}$ $\times$ $\frac{9}{100}$

= $\frac{549\text{P}}{40}$

Maturity Amount = Money Deposited + Interest

₹ 51607.50 = 60P + $\frac{549\text{P}}{40}$ = $\frac{2949\text{P}}{40}$

Or, P = ₹ $\frac{(51607.50\times 40)}{2949}$ = ₹700.