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Maturity value of recurring deposits - class-X
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Mr Bittu deposits a certain sum of money each month in a recurring deposit account. If the rate of interest is $8%$ per annum and Mr Bittu gets Rs $8,088$ from the bank after $3$ years. Find the value of his monthly instalment.
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A
$200$
💡 Explanation:
Let the monthly installment be $P$
Given, maturity value $=8088$, $n=3$ years $=3\times 12=36$ months, $r=8%$
Interest $=\dfrac {Pn(n+1)r}{2400}$
$=\dfrac {P\times 36\times 37 \times 8}{2400}$
$=\dfrac {111P}{25}$
We know, amount $=Pn+\dfrac {111P}{25}$
$8088=36P+\dfrac {111P}{25}$
$=\dfrac {1011P}{25}$
$\therefore 8088= \dfrac {1011P}{25}$
$\therefore P=200$
Therefore, monthly installment is Rs. $200$.