Q.What monthly instalment should Anita deposit in a Recurring Deposit account for 24 months at 9% per annum, so that she receives a maturity value of ₹26,250?

This is the RD formula used in reverse — factor out $P$ on the right-hand side and divide the given maturity value by the resulting bracket.

Here $M = ₹26{,}250$, $r = 9\%$, $n = 24$ months, and the monthly instalment $P$ is unknown.

Step 1 — Factor $P$ out of the RD formula.

Step 2 — Evaluate the bracket.

Step 3 — Solve for $P$.

$P = \frac{M}{26.25} = \frac{26{,}250}{26.25} = ₹1{,}000$ …

Dividing $M$ only by $n$ (i.e. computing $26{,}250/24$) ignores the interest term entirely and gives a value of $P$ that is too large, since part of the maturity value $M$ is interest, not instalments; the full …