Question

Mohan has a recurring deposit account in a bank for 2 years at 6% per annum simple interest.If he gets rupees 1200 as interest at the time of maturity .
find
1) the monthly instalment.
2) amount of maturity.

Answer 1

Answer:

P=Rs.10000

A=Rs.11200

Step-by-step explanation:

Given : Mohan has a recurring deposit account in a bank for 2 years at 6% per annum simple interest.If he gets rupees 1200 as interest at the time of maturity .

To find :  

1) The monthly installment.

2) Amount of maturity.

Solution :

P=Rs.1200

R=6%=0.06

T=2 years

1) $I=P\times R\times T$

$1200=P\times 0.06\times 2$

$P=\frac{1200}{0.06\times 2}$

$P=10000$

2) Amount is sum of total interest and monthly payment

A= Rs.1200+Rs.10000=Rs.11200

Therefore, Required amount = Rs.11200