Mathematics (www-tiwariacademy.com) (Chapter 8) (Comparing Quantities) (Class - vill) Exercise 8.3 Question 1: Calculate the amount and compound interest on: (a) # 10,800 for 3 years at 12% per annum compounded annually. (b) ¢ 18,000 for 2+ years at 10% per annum compounded annually. (©) 2 62,500 for 1 ; years at 8% per annum compounded annually. (@) & 8,000 for | years at 9% per annum compounded half yearly. (You could the year by year calculation using S. formula to verify). (e) ® 10,000 for 1 years at 8% per annum compounded half yearly. € Answer 1: (a) Here, Principal (P) = aa Time (2) = 3 years, Rate of interest (R) = 125 % 2% Amount (A) = v(t] = 10800(1+ 22) = 10800] ust) 100 2100 2x4 2 > = roxon(1-4) = 10300(2) = 10800x2 2x2 = ¥ 15,377.34 8 8 88 8 Compound Interest (C.l.) = A - P= % 10800 ~ 215377.34 = 24,577.34 (b) Here, Principal (P) = = 18,000, Time (7 Ee years, Rate of interest (R) = 10% pa. Amount (A) = P (+e = 18000} al 100, 100 10. = 1000( Hh) = 18000411 21,780 10 10 "10 Interest for ; years on ® 21,780 at rate of 10% = + 2 = 21,089 Total amount for 24 years = % 21,780 + % 1089 = % 22,869 Compound Interest (C.l.) = A - P = % 22869 - % 18000 = @ 4,869 (©) Here, Principal (P) = € 62500, ‘Time (n) = 14 7 3 years = 3 half-years (compounded half yearly) Rate of interest (R) = 8% = 4% (compounded half yearly) Amount (A) = P (ux '500| 1+ ) = c2s00(t +4) 100 100 25 www.tiwariacademy.com A Free web support in EducationMathematics (wwwetiwartacadeny.cota) (Chapter 8) (Comparing Quantities) (Class~ Vill , 2 ™ c2soo{ 22) = 6250026 aos 26 = 2% 70,304 25, 25 25 25 Compound Interest (C.1.) = A - P = % 70304 - % 62500 = % 7,804 (a) Here, Principal (P) = € 8000, Time (1) = 1 years = 2 half-years(compounded half yearly) Rate of interest (R) = 9% = 3% (compounded half yearly) Amount (A) = r(+ 5) = so00{ + 2 ) = s000{1+25) 100. 2x100. 200. = s000{ 2) = 8000x222 = 28,736.20 200. 200 200 Compound Interest (C.l = A - P= ® 8736.20 - ¥ 8000 = 736.20 (e) Here, Principal (P) = 10,000, Time (7) = 1 years = 2 half-years (compounded half yearly) Rate of interest (R) = 8% = 4% (compounded half yearly) Amount (A) = P (+5) = 10000] ua) fs roooo(+ 2) 100 100 25 = 100002828 = ¢ 10,816 2525 Question 2: Kamala borrowed % 26,400 from a Bank to buy a scooter at a rate of 15% pa. ‘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 2 year amount for 4 years), € Answer 2 Here, Principal (P) = % 26,400, Time (n) = 2 years 4 months, Rate of interest (R) = 15% p.a. Amount for 2 years (A) = P(X) = 2oi0o{ +15) = 26400{1+ 100 100 20. = aoion{ 23) 261002? 3 = 234,914 1 5) 34914151 100 = 2 1745.70 <. Total amount = 34,914 + € 1,745.70 = & 36,659.70 Interest for 4months = + =1 years at the rate of 15% = ix www.tiwariacademy.com A Free web support in EducationMathematics (vww.iwariacademy.com) (Chapter ~8) (Comparing Quantities) (Class = VII) 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 3: Here, Principal (P) = & 12,500, Time (T) =3 years, Rate of interest (R) = 12% pa. Amount for Radha, P = & 12,500, R = 10% and n = 3 years Amount (A) =P (+5) = 12s00{1+ 22) = 12s00{ 1+) 100. 100, 10. = r2s0o( 2) = 12s00x11, MM = % 16,637.50 10, 10 10 10 «. CL for Radha = A - P = 2 16,637.50 - 2 12,500 = 4,137.50 Here, Fabina pays more interest = = 4,500 - % 4,137.50 = % 362.50 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 | have to pay? € Answer 4: Here, Principal (P) = %12,000, Time (T) = 2 years, Rate of interest (R) = 6% pa. PxRxT _ 12000x6x2 100 100 Had he borrowed this sum at 6% paa., then Compound interest = P (1+ -P= 12000{ 145) 12000 100 100 Simple Interest = =%1,440 = 20001 +3) =12000 = r2o00( $2) = 12000 50, 50. = 1200025 = 12000 = @ 13,483.20 - 2 12,000 = % 1,483.20 Difference in both interests = % 1,483.20 - @ 1,440.00 = @ 43.20 Question 5: Vasudevan invested 60,000 at an interest rate of 12% per annum compounded half yearly. What amount would he get: () after 6 months? (ii) after 1 year? € Answer 5: Here, Principal (P) = & 60,000, Time (n) = 6 months = 1 half-year (compounded half yearly) Rate of interest (R) = 12% = 6% (compounded half yearly) www.tiwariacademy.com A Free web support in Education