Mrs. Rita deposits ₹1600 every month in recurring deposit account at 9% p.a. simple interest. She receives ₹65,592 at the time of maturity. What is the total time for which the account was held?
|
A. |
16 months |
|
B. |
24 months |
|
C. |
47 months |
|
D. |
36 months |
Let the time of the recurring deposit in month be n Monthly installment = ₹1600 Amount Deposited = 1600 x n = 1600n Rate of Interest = 9% Interest = P × n×(n+1)2× 12 × r100 = 1600 × n×(n+1)2× 12 × 9100 = 6 ×n × (n+1) = 6 n2 + 6 n Given Maturity Value = 65592 Maturity Value = Amount Deposited + Interest 65592 = 1600n + 6 n2 + 6 n 65592 = 1606n + 6 n2 6 n2 + 1606 n - 65592 = 0 (n-36)(3n+911) = 0 n = 36 and n = -911/3 (neglecting -911/3 as n cannot be negative as it time period) Therefore, the time for which he held the account = 36 months or 3 years. |