Dinesh has a recurring deposit account in a Bank for 3 1/2 years at  9 1/2%p.a. If he gets Rs.78,638 at the time of maturity . find the monthly instalments.

Asked by sreenivasanmaralapadu | 10th Jul, 2015, 08:01: PM

Expert Answer:

L e t space P space b e space t h e space m o n t h l y space i n s t a l m e n t. G i v e n space t h a t space t i m e space n equals 3 1 half space y e a r s space space space space space space space space space space space space space space space space space space space space space space space space therefore n equals 42 space m o n t h s T o t a l space t i m e space N equals fraction numerator n open parentheses n plus 1 close parentheses over denominator 2 cross times 12 end fraction space y e a r s equals fraction numerator 42 cross times 43 over denominator 2 cross times 12 end fraction space y e a r s R a t e space o f space i n t e r e s t equals 9 1 half % space p. a. equals 19 over 2 % p. a.  M a t u r i t y space A m o u n t equals R s.78638 W e space k n o w space t h a t comma space M a t u r i t y space a m o u n t equals P cross times n plus fraction numerator P cross times N cross times R over denominator 100 end fraction S u b s t i t u t i n g space t h e space g i v e n space v a l u e s comma space w e space h a v e comma 78638 equals P cross times 42 plus fraction numerator P cross times 42 cross times 43 cross times 19 over denominator 2 cross times 12 cross times 2 cross times 100 end fraction rightwards double arrow 78638 equals P cross times 42 open parentheses 1 plus fraction numerator 43 cross times 19 over denominator 48 cross times 100 end fraction close parentheses rightwards double arrow 78638 equals P cross times 42 open parentheses fraction numerator 48 cross times 100 plus 43 cross times 19 over denominator 48 cross times 100 end fraction close parentheses rightwards double arrow P cross times 42 equals fraction numerator 78638 cross times 48 cross times 100 over denominator 4800 plus 817 end fraction rightwards double arrow P equals fraction numerator 78638 cross times 48 cross times 100 over denominator 42 cross times 5617 end fraction rightwards double arrow P equals R s.1600 T h u s space t h e space m o n t h l y space i n s t a l m e n t space i s space R s.1600

Answered by Vimala Ramamurthy | 11th Jul, 2015, 11:54: AM

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