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Mathematics

Joseph has a recurring deposit account in a bank for two years at the rate of 8% per annum simple interest.

If at the time of maturity Joseph receives ₹2,000 as interest, then the monthly instalment is:

  1. ₹1,200

  2. ₹600

  3. ₹1,000

  4. ₹1,600

Banking

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Answer

Given,

I = 2000

R = 8\%

n = 2 years = 24 months

I=P×n(n+1)2×12×R100∴I=P×24×252×12×8100I=P×60024×0.08I=P×25×0.082000=P×2P=20002P=₹1,000I = P \times \dfrac{n(n+1)}{2 \times 12} \times \dfrac{R}{100}\\[1em] \therefore I = P \times \dfrac{24 \times 25}{2 \times 12} \times \dfrac{8}{100}\\[1em] I = P \times \dfrac{600}{24} \times 0.08\\[1em] I = P \times 25 \times 0.08\\[1em] 2000 = P \times 2 \\[1em] P=\dfrac{2000}{2}\\[1em] P =₹ 1,000

Hence, Option 3 is the correct option.

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