## RD Sharma Class 8 Solutions Chapter 14 Compound Interest Ex 14.1

These Solutions are part of RD Sharma Class 8 Solutions. Here we have given RD Sharma Class 8 Solutions Chapter 14 Compound Interest Ex 14.1

**Other Exercises**

**Question 1.****Find the compound interest when principal = Rs 3,000, rate = 5% per annum and time = 2 years.****Solution:**

Principal (P) = Rs 3,000

Rate (R) = 5% p.a.

Period (T) = 2 years

Amount after one year = Rs 3,000 + Rs 150 = 3,150

and principal for the second year = Rs 3,150

and interest for the second year

Compound interest for two years = Rs 150 + Rs 157.50 = Rs 307.50

**Question 2.****What will be the compound interest on Rs 4,000 in two years when rate of interest is 5% per annum ?****Solution:**

Principal (P) = Rs 4,000

Rate (R) = 5% p.a.

Period (T) = 2 years

Amount after one year = Rs 4,000 + Rs 200 = Rs 4,200

Principal for the second year = Rs 4,200

Interest for the second year

Compound interest for 2 years = Rs 200 + Rs 210 = Rs 410

**Question 3.****Rohit deposited Rs 8,000 with a finance company for 3 years at an interest of 15% per annum. What is the compound interest that Rohit gets after 3 years ?****Solution:**

Principal (P) = Rs 8,000

Rate (R) = 15% p.a.

Period (T) = 3 years

Amount after first year = Rs 8,000 + RS 1,200 = Rs 9,200

or Principal for the second year = Rs 9,200

Interest for the second year

Amount after 2 years = Rs 9,200 + Rs 1,380 = Rs 10,580

or Principal for the third year = Rs 10,580

Interest for the third year

Compound for the 3 years = Rs 1,200 + Rs 1,380 + Rs 1,587 = Rs 4,167

**Question 4.****Find the compound interest on Rs 1,000 at the rate of 8% per annum for 1\\(\\frac { 1 }{ 2 }) years when interest is compounded half-yearly ?****Solution:**

Principal (P) = Rs 1,000

Rate (R) = 8% p.a.

Period (T) = 1\\(\\frac { 1 }{ 2 }) years = 3 half-years

Amount after one half-year = Rs 1,000 + Rs 40 = 1,040

Or principal for the second half-year = Rs 1,040

Interest for the second half-year

Amount after second half-year = Rs 1,040 + 41.60 = Rs 1,081.60

Or principal for the third half-year = Rs 1081.60

Interest for the third half-year

Compound interest for the third half-years or 1\\(\\frac { 1 }{ 2 }) years

= Rs 40 + Rs 41.60 + Rs 43.264 = Rs 124.864

**Question 5.****Find the compound interest on Rs 1,60,000 for one year at the rate of 20% per annum, if the interest is compounded quarterly.****Solution:**

Principal (P) = Rs 1,60,000

Rate (R) = 20% p.a. or 5% quarterly

Period (T) = 1 year or 4 quarters

Amount after first quarter = Rs 1,60,000 + 8,000 = 1,68,000

Or principal for the second quarter = Rs 1,68,000

Interest for the second quarter

Amount after the second quarter = Rs 1,68,000 + Rs 8,400 = 1,76,400

Or principal for the third quarter = Rs 1,76,400

Interest for the third quarter

Amount after third quarter = Rs 1,76,400 + 8,820 = Rs 1,85,220

or Principal for the fourth quarter = Rs. 1,85,220

Interest for the fourth quarter

Total compound interest for the 4 quarters = Rs 8,000 + Rs 8,400 + Rs 8,820 + 9,261 = Rs 34,481

**Question 6.****Swati took a loan of Rs 16,000 against her insurance policy at the rate of 12\\(\\frac { 1 }{ 2 }) % per annum. Calculate the total compound interest payable by Swati after 3 years.****Solution:**

Amount of loan or principal (P) = Rs 16,000

Amount after first year = Rs 16,000 + Rs 2,000 = Rs 18,000

Principal for the second year = Rs 18,000

Interest for the second year

Amount after second year = Rs 18,000 + 2,250 = Rs 20,250

Principal for the third year = Rs 20,250

Compound for 3 years = Rs 2,000 + Rs 2,250 + 2531.25 = Rs 6,781.25

**Question 7.****Roma borrowed Rs 64,000 from a bank for 1\\(\\frac { 1 }{ 2 }) years at the rate of 10% per annum. Compute the total compound interest payable by Roma after 1\\(\\frac { 1 }{ 2 }) years, if the interest is compounded half-yearly.****Solution:**

Principal (sum borrowed) (P) = Rs 64,000

Rate (R) = 10% p.a. or 5% half-yearly

Period (T) = 1\\(\\frac { 1 }{ 2 }) years or 3 half-years

Amount after first half-year = Rs 64,000 + Rs 3,200 = Rs 67,200

Or principal for the second half-year = Rs 67,200

Interest for the second half-year

Amount after second half-year = Rs 6,7200 + 3,360 = Rs 70,560

Or principal for the third half-year = Rs 70,560

Interest for the third half-year

Total compound interest for 3 half-years

or 1\\(\\frac { 1 }{ 2 }) years = Rs 3,200 + Rs 3,360 + Rs 3,528 = Rs 10,088

**Question 8.****Mewa Lai borrowed Rs 20,000 from his friend RoopLal at 18% per annum simple interest. He lent it to Rampal at the same rate but compounded annually. Find his gain after 2 years.****Solution:**

Principal (P) = Rs 20,000

Rate (R) = 18% p.a.

Period (T) = 2 years

In second case

Interest for the first year

Amount after one year = Rs 20,000 + Rs 3,600 = Rs 23,600

Or principal for the second year = Rs 23,600

Interest for the second year

Interest for two years = Rs 3,600 + 4,248 = Rs 7,848

Gain = Rs 7,848 – Rs 7,200 = Rs 648

**Question 9.****Find the compound interest on Rs 8,000 for 9 months at 20% per annum compounded quarterly.****Solution:**

Principal (P) = Rs 8,000

Rate (R) = 20% p.a. or 5% p.a. quarterly

Period (T) = 9 months or 3 quarters

Interest for the first quarterly

Amount after first quarter = Rs 8,000 + Rs 400 = Rs 8,400

Or principal for second quarter = Rs 8,400

Interest for the second quarter

Amount after second quarter = Rs 8,400 + Rs 420 = Rs 8,820

Or principal for the third quarter = Rs 8,820

Interest for the third quarter

Compound interest for 9 months or 3 quarters = Rs 400 + Rs 420 + Rs 441 = Rs 1,261

**Question 10.****Find the compound interest at the rate of 10% per annum for two years on that principal which in two years at the rate of 10% per annum gives Rs. 200 as simple interest.****Solution:**

Simple interest = Rs 200

Rate (R) = 10% p.a.

Period (T) = 2 years.

Now in second case,

Principal CP) = Rs 1,000

Rate (R) = 10% p.a.

Period (T) = 2 years.

Amount after one year = Rs 1,000+ Rs 100 = Rs 1,100

Or principal for the second year = Rs 1,100

Total interest for two years = Rs 100 + Rs 110 = Rs 210

**Question 11.****Find the compound interest on Rs 64,000 for 1 year at the rate of 10% per annum compounded quarterly.****Solution:**

Principal (P) = Rs 64,000

Rate (R) = 10% p.a. or \\(\\frac { 5 }{ 2 }) % quarterly

Period (T) = 1 year = 4 quarters

Amount after first quarter = Rs 64,000 + Rs 1,600 = Rs 65,600

Or principal for the second quarter = Rs 65,600

Interest for the second quarter

Amount after second quarter = Rs 65,600 + Rs 1,640 = Rs 67,240

Or principal for the third year = Rs 67,240

= Rs 1,681

Amount after third quarter = Rs 67,240 + Rs 1,681 = Rs 68,921

Or principal for the fourth quarter

Total compound interest for 4 quarters or one year

= Rs 1,600 + Rs 1,640 + Rs 1,681 + Rs 1723.025 = Rs 6644.025

**Question 12.****Ramesh deposited Rs 7,500 in a bank which pays him 12% interest per annum compounded quarterly. What is the amount which he receives after 9 months ?****Solution:**

Principal (P) = Rs 7,500

Rate (R) = 12% p.a. or 3% quarterly

Time (T) = 9 months or 3 quarters

Amount after one quarter = Rs 7,500 + Rs 225 = Rs 7,725

Or Principal for second quarter = Rs 7,725

Interest for the second quarter

Amount after second quarter = Rs 7,725 + Rs 231.75 = Rs 7956.75

Or principal for the third quarter

Total amount he received after 9 months = Rs 7956.75 + Rs 238.70 = Rs 8195.45

**Question 13.****Anil borrowed a sum of Rs 9,600 to install a hand pump in his dairy. If the rate of interest is 5\\(\\frac { 1 }{ 2 }) % .per annum compounded annually, determine the compound interest which Anil will have to pay after 3 years.****Solution:**

Principal (P) = Rs 9,600

Rate of interest (R) = 5\\(\\frac { 1 }{ 2 }) % = \\(\\frac { 11 }{ 2 }) % p.a.

Period (T) = 3 years.

Amount after one year = Rs 9,600 + Rs 528 = Rs 10,128

Or principal for second year = Rs 10,128

Interest for the second year

Amount after second year = Rs 10,128 + Rs 557.04 = Rs 10685.04

or Principal for the third year = Rs 10685.04

Interest for the third year

Total compound interest = Rs 528 + Rs 557.04 + Rs 587.68 = Rs 1672.72

**Question 14.****Surabhi borrowed a sum of Rs 12,000 from a finance company to purchase a refrigerator. If the rate of interest is 5% per annum compounded annually, calculate the compound interest that Surabhi has to pay to the company after 3 years.****Solution:**

Sum of money borrowed (P) = Rs 12,000

Rate (R) = 5% p.a.

Period (T) = 3 years

Amount after one year = Rs 12,000 + Rs 600 = Rs 12,600

Or principal for the second year = Rs 12,600

Interest for the second year

Amount after second year = Rs 12,600 + Rs 630 = Rs 13,230

Or Principal for the third year = Rs 13,230

Interest for the third year

Total compound interest for 3 years = Rs 600 + Rs 630 + Rs 661.50 = Rs 1891.50

**Question 15.****Daljit received a sum of Rs 40,000 as a loan from a finance company. If the rate of interest is 7% per annum compounded annually, calculate the compound interest that Daljit pays after 2 years.****Solution:**

Amount of loan (P) = Rs 40,000

Rate (R) = 7% p.a.

Period = 2 years

Amount after one year = Rs 40,000 + Rs 2,800 = Rs 42,800

Or principal for the second year = Rs 42,800

Interest for the second year

Total interest paid after two years = Rs 2,800 + 2,996 = Rs 5,796

Hope given RD Sharma Class 8 Solutions Chapter 14 Compound Interest Ex 14.1 are helpful to complete your math homework.

If you have any doubts, please comment below. Learn Insta try to provide online math tutoring for you.