Simple Interest and Compound Interest

simple interest and compound interest class 8 rs aggarwal

Step by Step solutions of RS Aggarwal ICSE Class-8 Maths chapter 8- Simple Interest and Compound Interest by Goyal Brothers Prakashan is provided

Table of Contents

Exercise: 8-B

Q1: Find the amount and the compound interest on ₹5000 for 2 years at 8% per annum, compounded annually.

Step 1: Use the compound amount formula: \[ A = P \left(1 + \frac{R}{100}\right)^T \] Where:
P = ₹5000, R = 8%, T = 2 years
Step 2: Substituting values: \[ A = 5000 \left(1 + \frac{8}{100}\right)^2 = 5000 \left(1.08\right)^2 \\ A = 5000 \times 1.1664 = ₹5832 \]Step 3: Compound Interest = Amount − Principal \[ CI = 5832 – 5000 = ₹832 \]Answer: Amount = ₹5832, Compound Interest = ₹832


Q2: Find the amount and the compound interest on ₹8000 for 2 years at 6% per annum, compounded annually.

Step 1: Use the compound amount formula: \[ A = P \left(1 + \frac{R}{100}\right)^T \] Where:
P = ₹8000, R = 6%, T = 2 years
Step 2: Substituting the values: \[ A = 8000 \left(1 + \frac{6}{100}\right)^2 = 8000 \left(1.06\right)^2 \\ A = 8000 \times 1.1236 = ₹8988.80 \]Step 3: Compound Interest = Amount − Principal \[ CI = 8988.80 – 8000 = ₹988.80 \]Answer: Amount = ₹8988.80, Compound Interest = ₹988.80


Q3: Find the amount and the compound interest on ₹2500 for 2 years, compounded annually, the rate of interest being 6% during the first year and 8% during the second year.

Step 1: Principal for the first year = ₹2500
Rate for the first year = 6% \[ \text{Amount after 1st year} = 2500 \left(1 + \frac{6}{100}\right) = 2500 \times 1.06 = ₹2650 \]Step 2: Now this ₹2650 becomes the principal for the second year
Rate for the second year = 8% \[ \text{Amount after 2nd year} = 2650 \left(1 + \frac{8}{100}\right) = 2650 \times 1.08 = ₹2862 \]Step 3: Compound Interest = Final Amount − Original Principal \[ CI = 2862 – 2500 = ₹362 \]Answer: Amount = ₹2862, Compound Interest = ₹362


Q4: Find the amount and the compound interest on ₹25000 for 3 years at 6% per annum, compounded annually.

Step 1: Use the compound amount formula: \[ A = P \left(1 + \frac{R}{100}\right)^T \] Where:
P = ₹25000, R = 6%, T = 3 years
Step 2: Substituting the values: \[ A = 25000 \left(1 + \frac{6}{100}\right)^3 = 25000 \left(1.06\right)^3 = 25000 \times 1.191016 = ₹29775.40 \]Step 3: Compound Interest = Amount − Principal \[ CI = 29775.40 – 25000 = ₹4775.40 \]Answer: Amount = ₹29775.40, Compound Interest = ₹4775.40


Q5: Find the amount and the compound interest on ₹10000 for 3 years at 10% per annum, compounded annually.

Step 1: Use the compound amount formula: \[ A = P \left(1 + \frac{R}{100}\right)^T \] Where:
P = ₹10000, R = 10%, T = 3 years
Step 2: Substitute the values: \[ A = 10000 \left(1 + \frac{10}{100}\right)^3 = 10000 \times (1.10)^3 = 10000 \times 1.331 = ₹13310 \]Step 3: Compound Interest = Amount − Principal \[ CI = 13310 – 10000 = ₹3310 \]Answer: Amount = ₹13310, Compound Interest = ₹3310


Q6: Karim took a loan of ₹25000 from Corporation Bank at 12% per annum, compounded annually. How much amount, he will have to pay at the end of 3 years?

Step 1: Use the compound amount formula: \[ A = P \left(1 + \frac{R}{100}\right)^T \] Where:
P = ₹25000, R = 12%, T = 3 years
Step 2: Substitute the values: \[ A = 25000 \left(1 + \frac{12}{100}\right)^3 = 25000 \times (1.12)^3 = 25000 \times 1.404928 = ₹35123.20 \]Answer: Karim will have to pay ₹35123.20 at the end of 3 years


Q7: Manoj deposited ₹15625 in a bank at 8% per annum, compounded annually. How much amount will he get after 3 years?

Step 1: Use the compound amount formula: \[ A = P \left(1 + \frac{R}{100}\right)^T \] Where:
P = ₹15625, R = 8%, T = 3 years
Step 2: Substitute the values: \[ A = 15625 \left(1 + \frac{8}{100}\right)^3 = 15625 \times (1.08)^3 = 15625 \times 1.259712 = ₹19683 \]Answer: Manoj will get ₹19683 after 3 years


Q8: A person lent out ₹16000 simple interest and the same sum on compound interest for 2 years at \(12\frac{1}{2}\)% per annum. Find the ratio of the amounts received by him as interests after 2 years.

Step 1: Given Principal = ₹16000
Rate = \(12\frac{1}{2} = \frac{25}{2}\)% per annum
Time = 2 years
Step 2: First, calculate Simple Interest: \[ SI = \frac{P \times R \times T}{100} = \frac{16000 \times \frac{25}{2} \times 2}{100} \\ SI= \frac{16000 \times 25}{100} = ₹4000 \]Step 3: Now calculate Compound Interest: \[ A = P \left(1 + \frac{R}{100} \right)^T = 16000 \left(1 + \frac{25}{200}\right)^2 = 16000 \left(1.125\right)^2 = 16000 \times 1.265625 = ₹20250 \\ CI = A – P = 20250 – 16000 = ₹4250 \]Step 4: Ratio of interests: \[ SI : CI = 4000 : 4250 = \frac{4000}{250} : \frac{4250}{250} = 16 : 17 \]Answer: The required ratio is 16 : 17


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