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Ashish deposits a certain sum of money every month is a Recurring Deposit Account for a period of 12 months. If the bank pays interest at the rate of 11% p.a. - Mathematics

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Question

Ashish deposits a certain sum of money every month is a Recurring Deposit Account for a period of 12 months. If the bank pays interest at the rate of 11% p.a. and Ashish gets ₹ 12,715 as the maturity value of this account, what sum of money did money did he pay every month?

Sum
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Solution

Let Installment per month (P) = Rs. y

Number of months (n) = 12

Rate of interest (r) = 11% p.a

So,

∴ `S.I. = P xx (n(n + 1))/(2 xx 12) xx r/100`

= `y xx (12(12 + 1))/(2 xx 12) xx 11/100`

= `y xx 156/24 xx 11/100`

= Rs 0.715y

Hence,

Maturity value = Rs. (y × 12) + Rs. 0.715y = Rs. 12.715y

Given maturity value = Rs. 12,715

So, on equating we have

Rs. 12.715y = Rs 12,715

`\implies` y = `12715/12.715` = Rs. 1000

Therefore, the sum of money Ashish paid every month was Rs. 1000.

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