NCERT Class 8 Mathematics Solutions: Chapter 8 – Comparing Quantities Exercise 8.3 Part 3

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Image shows the example of compound interest

Image Shows the Example of Compound Interest

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Question: 5 Vasudevan invested Rs. 60,000 at an interest rate of 12% per annum compounded half yearly. What amount would he get.

(i) After 6 months?

(ii) After 1 year?

Answer:

(i) After 6 months?

Here, Principal (P) = Rs. 60,000

Time (n) = 6 months = 1 half-year (compounded half yearly)

Rate of interest (R) = 12% = 6% (compounded half yearly)

Amount (A)

After 6 months Vasudevan will get Rs. 63,600.

(ii) Here, Principal (P) = Rs. 60,000

Time (n) = 1 year = 2 half-years (compounded half yearly)

Rate of interest(R) = 12% = 6% (compounded half yearly)

Amount (A)

After 1 year Vasudevan will get Rs. 67,416.

Question: 6 Arif took a loan of Rs.80,000 from a bank. If the rate of interest is 10% per annum, find the difference in amounts he would be paying after if the interest is:

(i) Compounded annually.

(ii) Compounded half yearly.

Answer

(i) Compounded annually

Here, Principal (P) = Rs. 80,000, Time (n) Rate of interest (R) = 10%

Amount for 1 year (A)

Interest for year =

Total amount = Rs. 88,000 + Rs.4400 = Rs. 92,400

(ii) Compounded half yearly

Here, Principal (P) = Rs. 80,000

Time (n) half-years (compounded half yearly)

Rate of interest (R) = 10% = 5% (compounded half yearly)

Amount (A)

Difference in amounts = Rs. 92,610 – Rs.92,400 = Rs. 210