Compound Interest Class 8 by Versatile Classes

Front

What is Compound Interest?

Back

Compound Interest is the interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.

Front

How is Compound Interest different from Simple Interest?

Back

Compound Interest is calculated on the initial principal and also on the accumulated interest of previous periods, while Simple Interest is calculated only on the principal amount.

Front

What is the formula for calculating Compound Interest?

Back

The formula is A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount, r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested or borrowed for.

Front

What is the formula for calculating Simple Interest?

Back

The formula is SI = PRT, where SI is the Simple Interest, P is the principal amount, R is the rate of interest per year, and T is the time in years.

Front

If Mayank bought a Microwave for Rs 4000 on credit with a 5% interest for the first year and 15% for the second year, what will be the total cost after two years?

Back

Rs. 4830

Front

What is the difference in Simple Interest for 3 years and 5 years at 18% per annum if it amounts to Rs. 2160?

Back

The sum is Rs. 6000.

Front

If a man invests 1/3rd of his sum at 7%, 1/4th at 8%, and the remaining at 10%, and earns Rs. 408 in interest, what is the total investment?

Back

Rs. 4800.

Front

At what rate percent per annum will a sum of money triple itself in 25 years?

Back

8%.

Front

Calculate the amount on Rs. 4480 at 8% per annum for 3 years.

Back

Rs. 5555.20.

Front

What does 'Principal' mean in the context of interest?

Back

Principal is the initial sum of money invested or loaned, before interest.