What is Compound Interest Formula
Maths Questions Answers
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Class - VIII - Maths:- INDEX
1. Squares & Square Roots2. Cubes & Cube Roots
3. Exponents & Radicals
4. Profit Loss & Discount
5. Compound Interest
6. Algebraic Identities
7. Polynomials
8. Linear Equations
9. Parallel Lines
10. Types of Quadrilaterals
11. Construction of Quadrilaterals
12. Circles
13. Areas
14. Surface Areas
15. Volumes
16. Statistics
Class - VIII - Maths
[ P=Principal; R=Rate of interest; T=Time]
Please make sure that the both 'Time' and 'Rate of interest' are in the same reference .i.e. years / months / days
C.I. = Compound Interest;
n=No of period
Question - Type 1 -
Find the compound interest on Rs 10000/- for 3 years @ 10 % annually, by simple interest and compound interest formula.
Answer - 1-
Refer the formulas shown in left side.
By Simple Interest Method - Since the question is for compound interest annually, therefore we have to calculate annually.
(a) Interest for 1st year = 10000 * 1 * 10/100 = 1000
P after 1 year = 10000+1000=11000
(a) Interest for 2nd year = 11000 * 1 * 10/100 = 1100
P after 1 year = 11000+1100=12100
(a) Interest for 3rd year = 12100 * 1 * 10/100 = 1210
P after 1 year = 12100+1210=13310
Therefore Interest = 13310 - 10000 = Rs 3310
By Compound Interest Method - P=10000 R=10 n=3
= 10000 [(1.331)-1] = 10000 * .331 = Rs 3310
(Cont..... to page 2 )
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What is Compound Interest Formula (Page 1/3)
Important Tips (1) Simple Interest = (P * T * R)/100[ P=Principal; R=Rate of interest; T=Time]
Please make sure that the both 'Time' and 'Rate of interest' are in the same reference .i.e. years / months / days
C.I. = Compound Interest;
n=No of period
Question - Type 1 -
Find the compound interest on Rs 10000/- for 3 years @ 10 % annually, by simple interest and compound interest formula.
Answer - 1-
Refer the formulas shown in left side.
By Simple Interest Method - Since the question is for compound interest annually, therefore we have to calculate annually.
(a) Interest for 1st year = 10000 * 1 * 10/100 = 1000
P after 1 year = 10000+1000=11000
(a) Interest for 2nd year = 11000 * 1 * 10/100 = 1100
P after 1 year = 11000+1100=12100
(a) Interest for 3rd year = 12100 * 1 * 10/100 = 1210
P after 1 year = 12100+1210=13310
Therefore Interest = 13310 - 10000 = Rs 3310
By Compound Interest Method - P=10000 R=10 n=3
= 10000 [(1.331)-1] = 10000 * .331 = Rs 3310
(Cont..... to page 2 )
© funandhobby.com ( What is Compound Interest Formula)