Page 1 - 2
P. 1

SAI International School
                                                        CLASS - VIII

                  Mathematics
                  CHAPTER-8: Comparing Quantities

                   Lesson Notes




                  SUBTOPICS:  Simple and CompoundInterest






















                  SI(SIMPLE INTEREST)

                  Simple interest is the extra money charged on a loan where the principal amount
                  remains fixed for a  particular time period.

                  Simple interest =P.T.R/100, where

                  P is the principal amount
                  T is the number of years.
                  R is the interest rate

                  EXAMPLE: -Find the amount Neha will get if she invests Rs 2500 for 2 years 6 months
                  at 6% simple interest per annum.

                  SOLUTION

                  Interest = Principal × Rate of interest × Time /100=  2500 ×6×5 = Rs 375
                                                                          2×100
                  So, the amount Neha will get= 2500 + 375 = Rs 2875


                  COMPOUND INTEREST ( CI)


                                                                1
   1   2   3