Case study:
Manish, a bank employee, purchased a plot (15 m × 18 m) in Ghaziabad. He paid ₹ 2,00,000 at the beginning as down payment and agreed to pay the remaining ₹ 6,00,000 at the end of 2 years from the date of purchase.
In order to pay ₹ 6,00,000 at the end of two years, he opened an R.D. account in his bank, with ₹ 20,000 per month at 8% rate of interest.
(i) Find the maturity value of this account at end of 2 years.
(ii) Is the M.V. of the above R.D. account equal to ₹ 6,00,000 ?
If not, how much more/less should the monthly instalment be so that Manish gets the required money (₹ 6,00,000) at the end of two years ?

Question

Case study:
Manish, a bank employee, purchased a plot (15 m × 18 m) in Ghaziabad. He paid ₹ 2,00,000 at the beginning as down payment and agreed to pay the remaining ₹ 6,00,000 at the end of 2 years from the date of purchase.

In order to pay ₹ 6,00,000 at the end of two years, he opened an R.D. account in his bank, with ₹ 20,000 per month at 8% rate of interest.

(i) Find the maturity value of this account at end of 2 years.

(ii) Is the M.V. of the above R.D. account equal to ₹ 6,00,000 ?

If not, how much more/less should the monthly instalment be so that Manish gets the required money (₹ 6,00,000) at the end of two years ?

Manish, a bank employee, purchased a plot (15 m × 18 m) in Ghaziabad. He paid ₹ 2,00,000 at the beginning as down payment and agreed to pay the remaining ₹ 6,00,000 at the end of 2 years from the date of purchase. Banking, Concise Mathematics Solutions ICSE Class 10.

KnowledgeBoat · Accepted Answer

(i) Given, n = 2 years = 24 months, P = ₹ 20,000, r = 8% Substituting values we get : Maturity Value (M.V.) = Sum deposited + Interest = ₹ 20,000 × 24 + ₹ 40,000 = ₹ 5,20,000. Hence, the maturity value of this account at end of 2 years = ₹ 5,20,000. (ii) Maturity value of the R.D. account is ₹ 5,20,000. So the maturity value is not equal to ₹ 6,00,000. ₹ 6,00,000 - ₹ 5,20,000 = ₹ 80,000 So, Manish gets ₹ 80,000 less. Thus, the M.V. of the above R.D. account is not equal to ₹ 6,00,000. Let required monthly instalment be x. Substituting values we get : Maturity value = 24x + 2x = 26x Since required M.V. = 6,00,000 26x = 6,00,000 x = = 23,076.92 ₹ 23,077. Difference in monthly instalment = ₹ 23,077 − ₹ 20,000 = ₹ 3,077. Hence, monthly instalment should be ₹ 3,077 more per month to get ₹ 6,00,000 at the end of two years.

Mathematics

Banking

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