Page 130 - Maths Skills - 8

128 Maths

5. In case of compound interest, the principal: ........
(i) remains constant throughout the loan 7. Amount = Principal 1 ........ .
period ........
(ii) increases every year throughout the loan 8. If rate = R% annually, then rate for quarter
period year = ________.
(iii) decreases every year throughout the loan 9. The period for which the interest is calculated
period and added to the principal is called ________
(iv) all of the above period.

6. In case of compound interest: 10. If rate = R% annually, then rate for half-year =
________.
(i) the amount for the first year becomes the
interest for the second year C. Write ‘T’ for true and ‘F’ for false statements
(ii) the amount for the first year becomes the 1
.
principal for the second year 1. 10% = 100
(iii) the interest for the first year becomes the 2. 20% of 1000 is 250.
principal for the second year
(iv) all of the above 3. The time for which the money is lent is called
7. The interest together with principal is called: the time period.

(i) simple interest (ii) compound interest 4. The sum of money taken as loan is called
(iii) amount (iv) none of these principal.
8. When Principal = ` P, Rate = R% per annum and 5. Compound interest can also be calculated on the
Time = n years, then compound interest is given basis of simple interest.
by the formula: 6. Compound interest is always greater than simple

(i) A = P 1 R n interest.

100 7. Growth and depreciation can be calculated using
n

(ii) C.I. = P 1 R the compound interest formulae.

100 8. The decrease in value of an article over a period
R n of time is called depreciation.
(iii) C.I. = P 1 1

100 9. When growth takes place at a constant rate, we
(iv) all of the above put (– R) in the place of R in the growth formula.

B. Fill in the Blanks
D. Case Study Based Questions
1. Amount = Principal + ________.
2. Overhead expenses are ________, _________, Mohan took a loan
__________, _________, etc. of ` 8000 from the
bank at a simple
3. Sum borrowed is called ________. interest rate of
4. The extra money paid by the borrower is called 5% per annum for
________. 2 years and he has
5. Discount is always calculated on ________. to pay back the
total amount of the
6. C.I. = Amount – ________. end of two years.