Sum

Rekha opened a recurring deposit account for 20 months. The rate of interest is 9% per annum and Rekha receives Rs. 441 as interest at the time of maturity.

Find the amount Rekha deposited each month.

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#### Solution

Let the monthly installment i.e P = Rs. x.

Since n = 20 months and r = 9%

∴ Interest `= P xx (n(n+1))/(2xx12) xx r/100`

`= (x xx 20 (21))/(2xx12) xx 9/100`

` = (x xx20xx21 )/(2xx12) xx 9/100`

` = (x xx 5xx7xx9)/(2xx100)`

Interest = 1.575 x Rs.

Interest = 441 {Given}

⇒ 1.575 x = 441

⇒ x = 280 Rs .

Concept: Computation of Interest

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