 # RD Sharma Solutions Class 8 Mathematics Solutions for Compound Interest Exercise 14.2 in Chapter 14 - Compound Interest

Question 1 Compound Interest Exercise 14.2

Compute the amount and the compound interest in each of the following by usingthe formulae when :

(i)Principal = Rs 3000, Rate = 5%, Time = 2 years

(ii)Principal = Rs 3000, Rate = 18%, Time = 2 years

(iii)Principal = Rs 5000, Rate = 10 paise per rupee per annum, Time = 2 years

(iv)Principal = Rs 2000, Rate = 4 paise per rupee per annum, Time = 3 years

(v)Principal = Rs 12800, Rate = 7 ½ %, Time = 3 years

(vi)Principal = Rs 10000, Rate = 20% per annum compounded half-yearly, Time =2 years

(vii)Principal = Rs 160000, Rate = 10 paise per rupee per annum compounded halfyearly, Time = 2 years

By using the formula,

A = P (1 + R/100)^n

Let us solve

(i)Given, P = Rs 3000, rate = 5%, time = 2years

A = P (1 + R/100)^n

= 3000 (1 + 5/100)^2

= 3000 (105/100)^2

= Rs 3307.5

Compound interest (CI) = A-P = Rs 3307.5 – 3000 = Rs 307.5

(ii)Given, P = Rs 3000, rate = 18%, time = 2years

A = P (1 + R/100)^n

= 3000 (1 + 18/100)^2

= 3000 (118/100)^2

= Rs 4177.2

Compound interest (CI) = A-P = Rs 4177.2 – 3000 = Rs 1177.2

(iii)Given, P = Rs 5000, rate = 10%, time = 2years

A = P (1 + R/100)^n

= 5000 (1 + 10/100)^2

= 5000 (110/100)^2

= Rs 6050

Compound interest (CI) = A-P = Rs 6050 – 5000 = Rs 1050

(iv)Given, P = Rs 2000, rate = 4%, time = 3years

A = P (1 + R/100)^n

= 2000 (1 + 4/100)^3

= 2000 (104/100)^3

= Rs 2249.72

Compound interest (CI) = A-P = Rs 2249.72 – 2000 = Rs 249.72

(v)Given, P = Rs 12800, rate = 7 ½ % = 15/2% = 7.5%, time = 3years

A = P (1 + R/100)^n

= 12800 (1 + 7.5/100)^3

= 12800 (107.5/100)^3

= Rs 15901.4

Compound interest (CI) = A-P = Rs 15901.4 – 12800 = Rs 3101.4

(vi)Given, P = Rs 10000, rate = 20 % = 20/2 = 10% (quarterly), time = 2years = 2 × 2 =4years

A = P (1 + R/100)^n

= 10000 (1 + 10/100)^4

= 10000 (110/100)^4

= Rs 14641

Compound interest (CI) = A-P = Rs 14641 – 10000 = Rs 4641

(vii)Given, P = Rs 160000, rate = 10% = 10/2% = 5% (half yearly), time = 2years = 2×2

= 4 quarters

A = P (1 + R/100)^n

= 160000 (1 + 5/100)^4

= 160000 (105/100)^4

= Rs 194481

Compound interest (CI) = A-P = Rs 194481 – 160000 = Rs 34481

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