Page 136 - ICSE Math 8

2. Fill in the blanks.
(a) ____________ of interest allows a principal amount to grow at a faster rate than ____________
interest.
(b) The ____________ increase in value of any asset is called appreciation.
(c) The value of any asset reduces over a period of time due to ____________ and ____________ and
tear.
(d) The principal on which the C.I. amounts to ` 150 in 2 years at the rate of 5% per annum is equal to
____________.

PRACTICE TIME

1. Sunil deposited ` 12,000 with a finance company at the rate of 9.5% per annum compounded annually
for 2 years. Calculate the interest received by him after 2 years.
2. Devesh gave Manav ` 1,250 on compound interest for 2 years at the rate of 12% per annum. How much
less would Devesh have got had he given the money to Manav for 2 years on simple interest at the rate
of 4% per annum?
3. Pratap borrowed ` 10,000 from a bank at the rate of 10% per annum simple interest and lent it to Gaurav
at the rate of 10% per annum compound interest. What will be his gain after 3 years?
729
4. A sum compounded annually becomes times of itself in 3 years. Find the rate of interest per annum.
512
5. Kusum and Ravi borrowed ` 80,000 and ` 60,000 respectively for a period of 3 years. Kusum paid simple
interest at the rate of 20% per annum, while Ravi paid compound interest at the rate of 20% per annum
compounded annually. Who paid more interest and by how much?
6. The difference between the simple interest and the compound interest on a certain sum for
2 years at the rate of 10% is ` 50. Find the principal.
7. In how many years will a sum of ` 30,000 amount to ` 31,827 at the rate of 6% per annum compounded
semi-annually?
8. A library had 8,000 registered members. The membership increased at the rate of 5% every six months.
After what time will the total membership be 9,261?
9. A sum of money amounts to ` 1,210 in 2 years and to ` 1,610.51 in 5 years. Find the principal and the
rate of interest when interest is compounded annually.
1
10. A sum of money amounts to ` 8820 in 1 year and to ` 9,261 in 1 years when interest is compounded
semi-annually. Find the sum and the rate of interest per annum. 2
1
11. A farmer borrowed ` 12,800 from a moneylender to install a jet pump. The rate of interest is 11 % per
4
annum compounded annually. At the end of 2 years, the farmer cleared the loan by paying ` 10,842 and
a gold ring. Find the cost of the ring.

THINK SMART

st
1. A bank offers 5% compound interest compounded half-yearly. If you deposit ` 1,600 on 1 January and
st
1 July of a year, calculate the amount you would gain by way of interest at the end of the year.
2. To complete a project of Metro Railways in 4 years, 7,500 workers were employed. At the end of the
first year 15% workers were retrenched. At the end of the second year 20% of those working at that time
were retrenched. In order to complete the project on time, the number of workers was increased by 15%
at the end of the third year. How many worker were working during the fourth year?

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