Question

A man has a Recurring *** account in a bank for 7⁄2 years. If the rate of interest is 12% per annum and the man gets Rs. 10,206 on maturity, find the value of monthly instalments.

Answer 1

Maturity value = Rs (y × 12) + Rs. 0.715 y = Rs. 12.715y

Given maturity value = Rs. 12,715

Then Rs. 12.715 y = Rs. 12,715

Maturity value = Rs (y × 42) + Rs. 9.03y = Rs. 51.03 y

Given maturity value = Rs. 10,206

Then Rs. 51.03y = Rs. 10206