RD Sharma Class 8 Chapter 14 Solutions (Compound Interest)
RD Sharma Class 8 Maths Chapter 14 discusses compound interest and other topics like simple interest, applications of compound interest, etc. It is an essential financial concept that you must grasp. You must devote your time to fully understand what these concepts mean so that you can use them to your advantage in real-life situations as well.
There are 5 exercises in the RD Sharma Class 8 Maths Solutions for Chapter 14. All the exercises cover around 89 questions in total. The problems include all the necessary concepts that are significant from your exam point of view. Practising these questions will help you in gaining full knowledge of topics. Topics like compound interest are exciting and also help you in higher classes.
The faculty of Instasolv has framed all the answers to the questions of RD Sharma Class 8 Maths Chapter 14 exercises. You can access these solutions anytime. You can also send any of your problems to Instasolv, and the faculty team will revert with a proper answer to your query. The experts are professional with years of experience and work together to render you the RD Sharma Class 8 Maths Solutions. Here are some most important concepts related to this chapter for your revision.
Important Topics for RD Sharma Class 8 Maths Solutions Chapter 14: Compound Interest
RD Sharma Class 8 Maths Chapter 8 covers all the necessary information regarding Compound Interest. You might have heard a statement like “one year interest for FD (fixed deposit) in the bank @ 9% per annum” in your daily life. You will understand this statement when you go through all the concepts of Compound Interest. Now, let’s discuss this topic in detail.
Interest is the extra amount of money that some institutions like banks or post offices pay when you deposit your money with them.
Simple interest is calculated only on the initial amount invested or loaned.
Simple Interest=PXRXT/100 where P= Principal amount, r=rate, t=time
- Your money grows faster when you use compound interest over simple interest. Simple interest is used to calculate interest on a certain balance and is paid only on the principal, whereas compound interest is paid on the principal plus all the previously earned interests.
- Compound interest is important to understand because it affects all our investments.
- Compound interest is calculated not only on the initial principal but also includes all the other accumulated interest of previous periods of a deposit or loan. It can be calculated annually, half-yearly and quarterly
- The formula of Compound Interest A = P (1 + r/n) (nt) , where
A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for
Applications of Compound Interest Formula
You might come across some situations where you could use the formula for calculation of the amount in Compound Interest. Some of the applications are:
- population growth problems
- the growth of bacteria if the rate of growth is known
- the value of an item, if its price increases or decreases in the intermediate years or depreciation related problems
Exercise Discussion for RD Sharma Class 8 Maths Solutions Chapter 14: Compound Interest
- RD Sharma Solutions for Class 8 Maths Chapter 14 has a total number of 5 exercises. Each exercise contains a different number of questions.
- Exercise 14.1 comprises 15 questions. The questions ask you to find compound interest at different time periods.
- Exercise 14.2 has 22 questions. These questions too are entirely based on compound interest.
- Exercise 14.3 contains 28 questions. In this exercise, you need to find compound interest at different time periods. For example quarterly, 4 years, 3 months, etc.
- Exercise 14.4 comprises 16 questions. These questions are based on the application of compound interest which includes population growth problems.
- Exercise 14.5 has a total number of 8 questions. The questions are based on the application of compound interest and include depreciation-related problems.
- You need to use the formula of compound interest in almost every question. The formula of Compound interest is A = P (1 + r/n) (nt)
Benefits of RD Sharma Class 8 Maths Solutions Chapter 14 by Instasolv
- Finding solutions to RD Sharma Class 8 Maths Problems Chapter 14 might be difficult but Instasolv’s team makes it easier for you.
- All the solutions are written in an effective manner which will ensure you better grades.
- You can easily comprehend Instasolv’s solutions so that you can practice them more often and clear your concepts of the chapter in a thorough manner.
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