Question

16. Mr Motasha opens a recurring deposit
account of 600 per month at 12% p.a. If he
is paid 37668 as maturity amount, how many
instalments does he need to pay?​

Answer 1

He needs to pay approximately 50 installments.

Step-by-step explanation:

Let the number of installments be 'n'

p (principal amount) = 600

A (maturity amount) = 37668

r (rate of interest) = 12% per annum

$A=(p\times n)+p\times \frac{n(n-1)}{2\times 12}\times \frac{r}{100}$

$37668=(600\times n)+600\times \frac{n(n-1)}{2\times 12}\times \frac{12}{100}$

37668 = 3n² + 597n

-3n² - 597n + 37668 = 0

For this equation a=-3, b=-597, c=-37668

Use quadratic formula :

$n=\frac{-(-597)\pm \sqrt{(-597)^2-4(-3)(37668)} }{2(-3)}$

$n=\frac{597\pm \sqrt{808425} }{-6}$

As installments can not be negative therefore,

$n=\frac{597-\sqrt{808425} }{-6}$ = 50.35

n ≈ 50

He needs to pay approximately 50 installments.

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