Question

Mr Sharma has recurring deposit in a bank for 4.5 years at 11%.If gets 101418.75 at the time of maturity. Find the monthly instalment.

Answer 1

Think of x as a monthly in stallment

Profit rate = 11%

Duration (n) = 4 ½ years = 54 months

We know that

Total header for one month = x × n (n + 1) / 2

Enter the value of n

= x × (54 × 55) / 2

So we get it

= 1485x

Here Interest = PRT / 100

Pricing

= (1485x × 11 × 1) / (100 × 12)

= 13.6125x

So the maturity value = 54x + 13.6125x

= 67.6125x

By estimating the value

67.6125x = 101418.75

x = 101418.75 / 67.6125 = ₹ 1500

Therefore, the monthly deposit is ₹ 1500.

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