Exercise 7.6 class 8 solution

Exercise 7.6 class 8 solution-Introduction

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Exercise 7.6 class 8 solution – What is compound interest ?

Compound interest is a method of calculating interest where interest is not only earned or charged on the initial principal (the original amount of money) but also on the accumulated interest from previous periods. It’s a more dynamic approach to interest calculation compared to simple interest.

The formula for compound interest is given by:

A = P(1 + r/n)^(nt)

Where:

A is the future value of the investment or loan, including both the principal and interest.
P is the principal amount (the initial sum of money).
r is the annual interest rate (expressed as a decimal).
n is the number of times that interest is compounded per year.
t is the number of years the money is invested or borrowed for.

Here’s a simple example to illustrate compound interest:

Suppose you invest $1,000 in a savings account with a compound interest rate of 5% per year, compounded annually for 3 years.

Principal (P): $1,000
Rate (r): 5% or 0.05 (as a decimal)
Compounding Frequency (n): Annually (1 time per year)
Time (t): 3 years

Compound interest can be used for investments or savings where interest is reinvested periodically. The more frequently interest is compounded, the faster your money can grow, as it is earning interest on interest.

Exercise 7.6 class 8 solution-Examples of the exercise

Example 7.6.1.Find the compound interest for 2 years at 5% per Annum compounded annually where principal is Rs 10,500.

Solve:

Exercise 7.6 class 8 solution- exercise preview

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Exercise 7.6 class 8 solution- solution pdf

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7.6

Exercise 7.1 class 8 solution

Exercise 7.2 class 8 solution

Exercise 7.3 class 8 solution

Exercise 7.4 class 8 solution

Exercise 7.5 class 8 solution

Exercise 8.1 class 8 solution

Exercise 8.2 class 8 solution

Exercise 8.3 class 8 solution

Exercise 8.4 class 8 solution

Exercise 8.5 class 8 solution

Exercise 9.1 class 8 solution