Compound Interest is a very important chapter in ICSE Class 8 maths, ICSE Class 9 Maths and CBSE Class 8 Maths. Take this Maths Practice Test On Compound Interest here. This online aptitude test on Compound Interest will increase the confidence in students and students will never hesitate to do the sums on Compound Interest. Online Quiz on Compound Interest Maths is provided by The Brainbox Tutorials. The quiz has multiple choice questions on Compound Interest Maths. Students will be benefitted by this online Practice test on Compound Interest.
Compound Interest Definition and Examples
Financial institutions, insurance companies, post offices, banks and other companies which lend money and accept deposits follow an entirely different procedure for calculating interest.
Here, the borrower and lender fix a certain unit of time to work out the interest. The principal changes after each fixed unit of time because the interest accrued during the fixed unit of time is added to the principal and the amount obtained is considered as the principal for the next unt of time.
The interest for the next unit of time is computed on this new principal and so on.
After a certain specific period the difference between the amount and the money borrowed is calculated and this difference is called the compound interest(CI). The fixed unit of time is called the conversion period.
Formula For Compound Interest
When CI is Calulted annually,
When the rates are different for different years (successive rates of interest)
When Compound Interest is calculated semi-annually
Application of Compound Interest Formula
Practice Test On Compound Interest Maths
You can go through the tutorial of this chapter in video form to understand the concept clearly. Here is the link to the video tutorial.
Video tutorial on:
Happy learning an always say yes to maths.
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