NCERT Class 8 Mathematics Solutions: Chapter 8 – Comparing Quantities Exercise 8.3 Part 2 (For CBSE, ICSE, IAS, NET, NRA 2022)

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Compute Compound Interest

Question: 2 Kamala borrowed ₹ 26,400 from a Bank to buy a scooter at a rate of 15 % p. a. compounded yearly. What amount will she pay at the end of 2 years and 4 months to clear the loan?

(Hint: Find A for 2 years with interest is compounded yearly and then find SI on the 2nd year amount for years.)

Answer:

Here, Principal (P) = ₹ 26,400, Time (n) = 2 years and 4 month, Rate of Interest (R)

Amount (A)

Interest for 4 months = years at the rate of 15 %

Total amount

Question: 3 Fabina borrows ₹ 12,500 per annum for 3 years at simple interest and Radha borrows the same amount for the same time period at 10 % per annum, compounded annually. Who pays more interest and by how much?

Answer:

Here,

Principal (P) = ₹ 12,500, Time (n) = 3 years, Rate of Interest (R)

Simple Interest for Fabina =

Amount for Radha, P = ₹ 12,500, R = 10 % and n = 3 years

Amount (A)

C. I for Radha

Here, Fabina pays more interest

Question 4: I borrows ₹ 12,000 from Jamshed at 6 % per annum simple interest for 2 years. Had I borrowed this sum at 6 % per annum compound interest, what extra amount would I have to pay?

Answer:

Here, Principal (P) = ₹ 12,000, Time (n) = 2 years, Rate of Interest (R)

Simple Interest for Fabina =

Had he borrowed this sum at 6 % p. a. , then

Compound Interest

Difference in both interests = ₹ 1,483.20 – ₹ 1,440.00 = ₹ 43.20

Hence, extra amount ₹ 43.20 you have to pay.

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