Question

Ashok has a recurring deposit account for 2 years at 10% per annum. If he receives 1900 as interest, find the value of monthly instalment paid by him.

Answer 1

Given:

P = monthly instalment

Time = 2 years → n = 24

Rate r = 10%

Interest = ₹ 1900

Interest `= (Pxxn(n+1))/2 xx r/12xx100`

`1900 = (Pxx24xx25)/2 xx 10/1200`

`=(24xx25)/2`

= 300

`=10/1200`

`=1/120`

`1900=Pxx300xx1/120`

`1900=Pxx300/120`

`=300/120`

= 2.5

1900 = 2.5P

`P = 1900/2.5`

P = 760