Question

BANKING
Mr. R.K. Nair gets ₹6455 at the end of one year at the rate of 14% per annum in a recurring deposit account . Find the monthly instalment.

Answer 1

Maturity value=Rs 6455
Rate of interest= 14% p.a.
Let monthly installment be P.
Time(n)=12 months
Therefore, Interest=P*n(n+1)*r/2/12/100
Maturity value=P*n+interest
So, you will get the value of P.
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Answer 2

Think of ₹ P as a monthly inst allment

Duration (x) = 1 year = 12 months

We know that

Total monthly head = = × (x (x + 1)] / 2

Enter the value of x

= P × (12 × 13) / 2

With continuous calculation

= 78P

Interest = PRT / 100

Pricing

= (78P × 14 × 1) / (100 × 12)

So we get it

= 0.91P

So the mat urity value = P × x + SI

6455 = P × 12 + 0.91P

6455 = 12.91P

With continuous calculation

P = 6455 / 12.91 = ₹ 500