Question

Dinesh has a recurring deposit account in a bank for 3.5 years at 9.5% per annum if he gets rupees 78638 at the time of maturity, find the monthly installments​

Answer 1

Given :   Dinesh has a recurring deposit account in a bank for 3.5 years at 9.5% per annum if he gets rupees 78638 at the time of maturity

To find :  the monthly installments​

Solution:

Let say amount deposited each month =  P Rs

3.5 years = 42 months

1st month installment earn interest for  42 months

2nd month for 41 months

last month = 0

Amount deposited = P * 42  Rs

Interest  =   (P * 9.5 * 42/1200)  +  (P * 9.5 * 41/1200)  +........+ (P * 9.5 *  1/1200)

=  (9.5P/1200)(42  + 41  + ...............+ 1)

= (9.5P/1200)(42)(43/2)

= 42P ( 817/4800)

Amount Deposit + interest = Maturity amount

42P + 42P ( 817/4800)  = 78638

=> 42P ( 1+ 817/4800)  = 78638

=> 42P( 5617)   = 4800 *  78638

=> P = 4800 *  78638 / (42 * 5617)

=> P = 1600

Monthly installments = Rs 1600

Learn more:

Tanvi has a recurring deposit account in a finance company for 18 ...

https://brainly.in/question/9974725

a bank pays 6.25 % interest on monthly recurring deposit scheme ...

https://brainly.in/question/14957455