Mr Britto deposits a certain sum of money each month in a Recurring Deposit Account of a bank. It the rate of interest is of 8% per annum and Mr Britto gets Rs. 8088 from the bank after 3 years, find the value of his monthly instalment.
Let the value of monthly instalment be Rs. X.
Maturity value (M.V.) = Rs. 8088
Period = n = 3 years = 36 months
Rate of interest = r = 8% p.a.
S.I = `P xx (n(n+1))/(2xx12) xx r/100`
`= X xx (36 xx 37)/24 xx 8/100`
Total amount of maturity = 36X + 4.44X
`=> 8088 = 40.44X`
`=> X = 200`
Thus, the value of monthly installment is Rs. 200.
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