NumericalModerate1.5 marks
10(a)
Mohan has a recurring deposit account in a bank for 2 years at 6% p.a. simple interest. If he gets Rs. 1200 as interest at the time of maturity, find:
the monthly installment
Topic: Recurring deposit / interest
Previous-year question practice database
Answer
Exam answer
Monthly deposit = ₹P. n = 24 months. r = 6% p.a. Interest = ₹1,200.
R.D. interest: I = P × n(n+1)/2 × r/(12×100)
1200 = P × [24×25/2] × 6/1200 = 1.5P.
P = ₹800.
Answer: Monthly instalment = ₹800.
Explanation
Substitute n=24, r=6 and I=₹1,200 in the recurring-deposit interest formula.
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