## RS Aggarwal Solutions Class 7 Chapter-12 Simple Interest (Ex 12A) Exercise 12.1 - Free PDF

## FAQs on RS Aggarwal Solutions Class 7 Chapter-12 Simple Interest (Ex 12A) Exercise 12.1

**1. Differentiate between Simple Interest Rate and Compound Interest Rate**

Interest is the cost of borrowing money from a bank or an individual. There are two ways of calculating interest:

Simple interest - This is calculated on the original amount which is also known as the principal amount. The formula for simple interest is S.I = (P * n * i)/100 where P is the principal amount, n is the time period in years and i is the rate of interest.

Compound interest - This is calculated on the principal amount plus on the interest amount which has accumulated over the previous periods. It can also be defined as “an interest on an interest”. The formula to calculate compound interest is given by C.I = P [(1 + r/100)^{t} - 1]. Here P is the principal amount, r is the interest rate and t is the number of compounding periods of a year.

**2. What kind of interest rate do banks use on deposits and loans and how does it impact customers? **

Banks may use different interest rates on deposits and loan amounts. Based on their choice of interest your loan repayment and earnings from deposits would be impacted. For borrowers, a simple interest has less obligation as compared to compound interest. On the other hand, you would earn more if the bank applied a compound interest rate on your deposits. Banks typically use compound interest on nearly everything, but some kinds of loans are calculated as simple interest.

**3. Is it beneficial to use RS Aggarwal Chapter 12 simple interest solutions?**

Class 7 RS Aggarwal Chapter 12 exercise 12 A solution can be very helpful to the students seeking to get better marks in the examination. All the solutions are curated by subject matter experts at Vedantu with consideration for the convenience of the students. The step-wise solutions offered in the chapter provide the student with a clear idea to understand the concepts of profit and loss in the best possible way. Students can also download the solutions to the questions of exercise 11 B free of charge from the official website of Vedantu.

**4. List the important topics or concepts discussed in Chapter 12 Simple interest**

Listed below are the most important topics covered in Chapter 12 simple interest.

Definition and meaning of the principal

Definition and meaning of interest

Formula to calculate the amount after a certain period of time with a specific interest rate.

Definition and meaning of simple interest

Formula to calculate simple interest

Verbally related problems on simple interest

Students can understand all these topics from RS Aggarwal Chapter 12 (simple interest) solutions provided by Vedantu, India’s top online educator.

**5. How many questions are there in exercise 12 A?**

Class 7 RS Aggarwal Chapter 12 Simple Interest is split between two exercises, Exercise 12 A and exercise 12 B.

Exercise 12 A comprises 25 questions in total. These questions are based on the various aspects of Simple Interest, like Sums to find the final amount due after a certain period of time, with a specific interest rate. And problems finding the time required to collect a certain amount of simple interest on a specific principal amount with a fixed interest rate.