Question

Mr Chaturvedi has a recurring deposit account in Grindlay's Bank for 4 whole 1/2 years at 11% p.a(simple interest). if he gets Rs 101418.75 at the time of maturity, Find the monthly instalment

Answer 1

Hi please check this answer

Answer 2

Given :

Mr Chaturvedi has a recurring deposit account in Grindlay's Bank

The rate of interest = r = 11% at simple interest

The maturity amount = A = Rs 101418.75

The time period = 4$\dfrac{1}{2}$  years = $\dfrac{9}{2}$ × 12 = 54 months

To Find :

The monthly installment amount

Solution :

Let The principal = p

From simple interest method

Simple Interest = $\dfrac{principal\times rate\times time}{100}$

And Time = $\dfrac{n(n+1)}{24}$  as it is recurring deposit

Or,  T = $\dfrac{54(54+1)}{24}$ = 123.75

So, simple.interest = $\dfrac{p\times 11\times 123.75}{100}$ = Rs 13.6125 p

Again

Amount =  principal × number of months + interest

i.e  Rs 101418.75 = Rs 54 p + Rs 13.6125 p

Or,   101418.75 = 67.6125 p

∴      p = $\dfrac{101418.75}{67.6125}$

i.e principal installment = Rs 1500

Hence, The month installment of principal amount is Rs 1500 Answer