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?
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 " 0.715 "y"`
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
⇒ `"y" = 12715/12.715 = "Rs "1000`
Therefore, the sum of money Ashish paid every month was Rs. 1000.
