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The maturity value of an R.D. Account is ₹ 16176. If the monthly instalment is ₹ 400 and the rate of interest is 8%; find the time (period) of this R.D Account.

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Question

The maturity value of an R.D. Account is ₹ 16176. If the monthly instalment is ₹ 400 and the rate of interest is 8%; find the time (period) of this R.D Account.

Sum
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Solution

Installment per month (P) = Rs. 400

Number of months (n) = n

Let rate of interest (r) = 8% p.a.

∴ `S.I. = P xx (n(n + 1))/(2 xx 12) xx r/100`

= `400 xx (n(n + 1))/24 xx 8/100`

= Rs. `(4n(n + 1))/3`

Maturity value = Rs. (400 × n) + Rs. `(4n(n + 1))/3`

Given maturity value = Rs. 16,176

Then Rs. (400 × n) + Rs. `(4n(n + 1))/3` = Rs. 16,176

⇒ 1200n + 4n2 + 4n = Rs. 48,528

⇒ 4n2 + 1204n = Rs. 48,528

⇒ n2 + 301n – 12132 = 0

⇒ (n + 337)(n – 36) = 0

⇒ n = –337 or n = 36

Then number of months = 36 months

= 3 years

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Chapter 2: Banking - Chapter Test [Page 25]

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Nootan Mathematics [English] Class 10 ICSE
Chapter 2 Banking
Chapter Test | Q 5. | Page 25
Selina Concise Mathematics [English] Class 10 ICSE
Chapter 2 Banking (Recurring Deposit Account)
Exercise 2 (B) | Q 3. | Page 24

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