Question

Ms. Vasundhara Mehta has a recurring deposit account in a bank for 4 years at 10% p.a. She gets ₹ 6370 as the interest on maturity. Find:

1. the monthly installment.
2. the maturity amount.

Answer 1

Given:

Time period: n = 4 years = 48 months

Rate of interest: r = 10% p.a.

Interest received on maturity: ₹ 6370

`I = (Pxxn(n+1)xxr)/(2xx12xx100)`

`=( Pxx48xx49xx10)/2400 =  ₹6370`

`Pxx23520/2400=6370`

`=> P = (6370xx2400)/23520 `

= ₹ 650

Total deposit:

P ⋅ n

= 650 ⋅ 48

= ₹ 31200

Maturity value:

MV = ₹ 31200 + ₹ 6370

= ₹ 37570