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Mr. Chaturvedi has a recurring deposit account in Grindlay’s Bank for 4 1 2 years at 11% p.a. (simple interest). If he gets Rs 101418.75 at the time of maturity, find the monthly installment.

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Question

Mr. Chaturvedi has a recurring deposit account in Grindlay’s Bank for `4(1)/(2)` years at 11% p.a. (simple interest). If he gets Rs 101418.75 at the time of maturity, find the monthly installment.

Sum
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Solution

Let each monthly instalment = Rs x
Rate of interest = 11%
Period (n) = `4(1)/(2)` years or 54months,
Total principal for one month

= `₹ x xx ("n"("n" + 1))/(2)`

= `₹ x xx (54(54 + 1))/(2)`

= `x xx (54 xx 55)/(2)`
= 1485x
Interest

= `(1485x xx 11 xx 1)/(100 xx 12)`
= 13.6125x
∴ Total amount of maturity
= 54x + 13.6125x
= 67.6125x
∴ 67.6125x = 101418.75

x = `(101418.75)/(67.6125)`
= ₹1500
∴ Deposit per month = ₹1500.

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Chapter 2: Banking - Chapter Test

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