Question

Sachin opened a cumulative time deposit account with Punjab National Bank for 3/2 years. If the rate of interest is 11% per annum and the bank pays 11740.50 on maturity, find how much did Sachin deposit each month?

Answer 1

Given:

Time = `3/2 = 1.5` years

n = 1.5 × 12

= 18 months

Rate of interest r = 11% per annum

Maturity amount A = ₹ 11740.50

Monthly deposit = P

RD Maturity Amount

`A = Pn + (Pxxn(n+1))/2 xx r/(12xx100)`

`11740.50 = 18P + (18xx19)/2 xx 11/1200xxP`

`(18xx19)/2`

= 171

`171xx11/1200`

= 171 × 0.009166 ...

= 1.5685

11740.50 = 18P + 1.5685P

11740.50 = 19.5685P

`P = 11740.50/19.5685`

P = 600