NCERT Class 8 Mathematics Solutions: Chapter 8 – Comparing Quantities Exercise 8.3 Part 4

Get unlimited access to the best preparation resource for IEO Class-3: fully solved questions with step-by-step explanation- practice your way to success.

Example of compounded interest are given

Example of Compounded Interest Are Given

Loading image

Question 7 Maria invested Rs. 8,000 in a business. She would be paid interest at 5% per annum compounded annually.

(i) The amount credited against her name at the end of the second year.

(ii) The interest for the third year.

Answer:

(i) The amount credited against her name at the end of the second year.

Here,

Principal (P) = Rs. 8000, Rate of Interest (R) = 5%, Time (n) = 2 years

Amount (A)

(ii) The interest for the third year.

Here,

Principal (P) = Rs. 8000, Rate of interest (R) = 5%, Time (n) = 3 years

Amount (A)

Interest for 3rd years

Question 8:

Find the amount the compound interest on Rs. 10,000 for years at 10% per annum, compounded half yearly. Would this interest be more than the interest he would get if it was compounded annually?

Answer:

Here, Principal (P) = Rs. 10,000,

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

Time (n) = years half year (compounded half yearly)

Amount (A)

Compound Interest

If it is compounded annually, then

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

Amount (A)

Interest for year =

Total amount

Now,

Rs. 1,576.25 is more than Rs. 1,550.

Hence, interest is more when compounded half yearly.