Question

Mohan has recurring deposit account in a bank for two years at 6% p.a. simple interest. If he gets Rs 1,200 as interest at the time of maturity, find i. the monthly instalment, ii. the amount at maturity [4]​

Answer 1

Here, n= the number of months for which the money is deposited =2×12=24

r=6%, I= Rs. 1,200

Let the monthly instalments be Rs. x, then P= Rs. x

Using the formula S.I.=P×

2×12

n(n+1)

×

100

r

1,200=

2×12

x×24×25

×

100

6

2

3

x=1,200

⇒x= Rs. 800

Hence monthly installment = Rs. 800

Answer by

Sukhmani