RS Aggarwal for Class 8 Mathematics Solutions Chapter-11
FAQs on RS Aggarwal Solutions Class 8 Chapter-11 Compound Interest (Ex 11C) Exercise 11.3 - Free PDF
1. What is compound interest?
Compound interest is an amount that is calculated based on the deposit, which has already been made known as the principal amount and the accumulated interest from previous periods. A compound internet in simple terms is interest on interest. It will make the sum grow faster than a simple interest, which you get only on the amount deposited as a principal amount.
To calculate the compound interest, one has to multiply the initial principal amount by one plus, and the annual interest needs to be raised to the number of the compound period minus one. The total initial amount of the loan is then subtracted from the value, which came as a final for all the calculations. The formula for finding the compound interest is [P (1 + i)n] – P, where P is principal, and i is your normal annual interest in percentage terms. Lastly, n is several compounding periods.
2. What do you mean by a rate of interest? How does it affect the cost and profit?
The interest rate is different from the compound interest. It is the amount the lender charges for the use of the amount as a percentage of the principal. Most of the time interest rate is calculated annually, which is known as the Annual Percentage Rate (APR). The asset on which one can ask for interest could be cash, consumer goods, or an enormous asset like a vehicle or a property. In simpler terms, the interest rate is an essential rental that the borrower has to bear when using an asset. If you are taking a bank loan to purchase a car, you need to pay the money back. The amount the bank is paying for your car in one go will be taken back monthly will be a small amount of interest because it’s part of the service they have provided you.
3. What are the applications of Compound Interest in Real Life?
Compound Interests are used in different situations of real life. The following are some of the examples where compound interest formula are applicable in real-life situations,
It can be used to measure the growth of a population in a particular area based on valid data.
It can be used to predict all three times: past, present, and future price, population, the spread of the virus, water scarcity, etc.,
It is used to measure the value of an item, whether the price increases or decreases in the intermediate years or depreciation-related problems.
4. What is the difference between Simple and Compound Interest according to RS Aggarwal Solutions Class 8 Chapter-11 Compound Interest (Ex 11C) Exercise 11?
Interest is the cost/fee for borrowing money or an article from others. Interest can be classified into two types: Simple Interest (SI) and Compound Interest (CI).
Simple Interest is calculated based on the principal amount of a loan or a deposit.
Simple Interest = (Principal x Rate of Interest x Number of years) / 100
SI = PNR/100.
Compound Interest is the principle and interest accumulated on every period.
Compound Interest = Principal x (1+ Rate of Interest/100)^Number of Years - Principal
CI=P(1 + r/100)n-P
Simple Interest is easy to calculate as it has a fixed principal amount. Whereas in compound interest, the interest of the previous installment will be added to the principal amount. Compound Interest is always greater than Simple Interest (for more than one year).
5. What are the Key features of RS Aggarwal Solutions Class 8 Chapter-11 Compound Interest (Ex 11C) Exercise 11?
Key Features of RS Aggarwal Solutions for Mathematics
It is available online for free of cost.
It is easily accessible through the Vedantu website.
It is available online and can be accessed 24/7.
All the questions are provided in chapter-wise order.
It provides a solution for Class 6 to 12.
The book is created by highly experienced subject matter experts across the country.
It helps in improving the marks of the student.
It can be used as instant revision material at exam time.
6. How many exercises are there in RS Aggarwal Solutions Class 8 Chapter-11 Compound Interest?
RS Aggarwal Solution Chapter 11 of Class 8 consists of 4 exercises (Exercise- 11A, 11B, 11C, 11D) and 63 questions overall.
Exercise 11A consists of 8, where you just have to calculate the simple interest and the compound interest using the formula.
Exercise 11B consists of 30 questions and deals with compound interest of more than one rate of interest. In some questions, the final amount after applying the interest will be given and you have to calculate the original value.
Exercise 11C consists of 10 word-related problems.
Exercise 11D has 15 word-related problems, where all the questions are based on finding the compound interest.
7. How Vedantu's RS Aggarwal helps students to solve questions of Chapter 5 of Class 8?
Vedantu guides students of all classes. Once a student registers and enrolls in Vedantu, it is the duty of the experts to enhance the core knowledge of the students. The regular classes offered by Vedantu will help students to build a strong knowledge of the important concepts. Vedantu offers flexibility to students and gives them the freedom to learn the concepts at their own pace. It provides study materials for the students of all classes and to every subject. It offers various opportunities for the students to lead a bright future.