Page 213 - Start Up Mathematics_8 (Non CCE)

Answer in One Word or a Line
1. What is conversion period?
2. Define appreciation.
3. What is rate of depreciation?
4. Give the formula for calculating the amount if the interest is compounded annually but the time is in
fraction of a year.
5. What will be the rate of appreciation if the asset value reduces during certain years?

let’s evaluate
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?

Thinking Skills
1. 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
2. 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
3. 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.

Values and Life Skills
1
1. Gita borrowed ` 2,500 from a finance company for 1 years at the rate of 16% per annum. What amount
2
will she have to pay if the interest is compounded half-yearly? Why should we always pay our loan on
time?

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