Question

A man gets 4,956 at the end of one year at the rate of 6% p.a. in
a recurring deposit account. Find his monthly instalment.​

Answer 1

Given:

Amount = 4956 at end of year

Rate = 6%

To Find:

Monthly Installment

Solution:

Maturity value = 4956

N = 1 year = 12 months

Thus,

P x n + P n(n +1) / 2 x 12 x r/100 = 4956

Here P is the monthly installment

Thus,

P x 12 + P 12 ( 12 + 1) / 2 x 12 x 6/100 = 4956

P ( 12 + 39/100) = 4956

P ( 1239/100) = 4956

P = 495600/1239

= 400

Answer: The monthly installment is of Rs. 400