Question

Mr Nanda Mr Nanda has a recurring deposit account for 2 years at 10% P.A .if he received rupees 1900 as interest, find the value of monthly installment paid by Mr nanda

Answer 1

The value of the monthly installment paid by Mr. Nanda is Rs 760.

Step-by-step explanation:

We are given that Mr. Nanda has a recurring deposit account for 2 years at 10% p.a. and he received rupees 1900 as interest.

Let the monthly installment paid by Mr. Nanda be 'P'.

The rate of interest = R = 10%

The time period in months = n = $2 \times 12$ = 24 months

Amount of interest received = S.I. = Rs 1900

So, the formula for calculating simple interest is given by;

                           $\text{S.I.} = \text{P} \times \frac{n(n+1)}{2 \times 12} \times \frac{\text{R}}{100}$

Now, putting the values in the above formula we get;

$1900 = \text{P} \times \frac{24(24+1)}{2 \times 12} \times \frac{\text{10}}{100}$                          

$\text{P}= \frac{1900 \times 24 \times 100}{24 \times 25 \times 10}$

$\text{P}= 190 \times 4$ = Rs 760

Hence, the value of the monthly installment paid by Mr. Nanda is Rs 760.