#### Question

A man has a Recurring Deposit Account in a bank for 3 1/2 years. If the rate of interest is 12% per annum and the man gets Rs 10,206 on maturity, find the value of monthly instalments.

#### Solution

Let Installment per month(P) = Rs y

Number of months(n) = 42

Rate of interest(r) = 12% p.a.

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

`= y xx (42(42 + 1))/(2 xx 12)xx 12/100`

`= y xx 1806/24 xx 12/100 = Rs 9.03y`

Maturity value= Rs (y × 42) + Rs 9.03y = Rs 51.03y

Given maturity value = Rs 10,206

Then Rs 51.03y = Rs 10206

`=> y = 10206/51.03 = Rs 200`

Is there an error in this question or solution?

Solution A Man Has a Recurring Deposit Account in a Bank for 3 1/2 Years. If the Rate of Interest is 12% per Annum and the Man Gets Rs 10,206 on Maturity, Find the Value of Monthly Instalments. Concept: Types of Accounts.