Suppose we want to know the expression/formula to find the total interest amount gained at the end Class 8

Suppose we want to know the expression/formula to find the total interest amount gained at the end Class 8

Question 1.

Suppose we want to know the expression/formula to find the total interest amount gained at the end of the maturity period. What would be the formula for each of the two options? Class 8

Solution:

Without compounding:

Interest = p × r × t

With compounding:

Interest = p (1 + r)^t - p,

where p, r and t have their usual meanings.

Question 2.

Jasmine invests amount ‘p’ for 4 years at an interest of 6% p.a. Which of the following expression(s) describe the total amount she will get after 4 years when compounding is not done? Class 8

(i) p × 6 × 4

(ii) p × 0.6 × 4

(iii) p × [latex]\frac{0.6}{100}[/latex] × 4

(iv) p × [latex]\frac{0.06}{100}[/latex] × 4

(v) p × 1.6 × 4

(vi) p × 1.06 × 4

(vii) p + (p × 0.06 × 4)

Solution:

(vii) p + (p × 0.06 × 4)