Problem Statement
Priya has a recurring deposit account for $2$ years at $9\%$ p.a. simple interest. If she receives ₹$3,330$ as interest at maturity, find:
(i) Monthly installment $P$.
(ii) Total maturity amount.
Verified Solution & Marking Scheme
RD Interest Formula
$n = 24$. $I = P \times \frac{24 \times 25}{24} \times \frac{9}{100} = 2.25 P$.
Solve for P
$$2.25 P = 3330 \implies P = \frac{3330}{2.25} = ext{Rs } 1,480$$
Maturity Value
$$\text{MV} = (1480 \times 24) + 3330 = 35520 + 3330 = ext{Rs } 38,850$$