Question 1 - Figure it out - Page 22, 23, 24 - Chapter 1 Class 8 - Fractions in Disguise (Ganita Prakash II)

Transcript

Question 1 Bank of Yahapur offers an interest of 10% p.a. Compare how much one gets if they deposit ₹20,000 for a period of 2 years with compounding and without compounding annually.Here, we have to consider both examples Simple Interest Compound Interest Now, given that Principal = P = ₹ 20,000 Rate = R = 10% per year = 10/100 = 1/10 Time = 2 years Without Compounding Now, Interest = Principal × Rate × Time = P × R × T = 20,000 × 𝟏/𝟏𝟎 × 2 = ₹ 4,000 And, Amount = Principal + Interest = 20,000 + 4,000 = ₹ 24,000 With Compounding Now, Amount = 𝑨 =𝑷(𝟏+𝒓)^𝒕 = 20,000 × (1+1/10)^2 = 20,000 × ((10 + 1)/10)^2 = 𝟐𝟎,𝟎𝟎𝟎 × (𝟏𝟏/𝟏𝟎)^𝟐 = 𝟐𝟎,𝟎𝟎𝟎 ×𝟏𝟐𝟏/𝟏𝟎𝟎 = 200 × 121 = ₹ 24,200