Page 132 - Maths Skills - 8

130 Maths

2. Dhruv bought a car in 2001. When he sold it six years later, he found that it had reduced in value by 60%
and he received only ` 3,64,000. How much had he paid for the car in 2001.

Word Stock

Percent Ratio Profit Loss Interest Proportion Rate Selling Price
Cost Price Principal Annual Transaction Borrower Lender Amount Gain

Activity

Objective: To understand the difference between simple interest and compound interest and analyze which is
more beneficial.
Pre-Requisite Knowledge: Concept of simple interest and compound interest.

Materials Required: A table or chart of simple interest and compound interest (available in banks), a pencil and
an eraser.

Procedure: 1. Take a copy each of Simple Interest table and Compound Interest table.
SIMPLE INTEREST TABLE

Principal ` 200.00 ` 500.00 ` 700.00 ` 800.00
Rate % per annum Simple interest 4 6 7 8
for 1 year ` 8.00 ` 30.00 ` 49.00 ` 64.00

COMPOUND INTEREST TABLE
Principal ` 1000 ` 5000 ` 8000 ` 10000
Rate % per annum 5% 8% 10% 12%

COMPOUND INTEREST TABLE
Principal ` 1000 ` 5000 ` 8000 ` 10000
Compound Interest at the end of Ist year ` 50 ` 400 ` 800 ` 1200

2. Choose a suitable value of Principal, Rate and Time Period (take 5 to 6 values) on your own.
3. Look into the table and write the corresponding value of the amount when interest is calculated
as simple interest and compound interest and write the values in the observation table.

Time Simple Compound
Principal Rate
Period Interest Interest