# Exercise 7.7 class 8 solution

#### Exercise 7.7 class 8 solution-Introduction

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#### Exercise 7.7 class 8 solution-application of compound interest formula

Applications of Compound Interest Formula :There are some situations where we could use the formula for calculation of amount in compound interest.

(1) Growth and depriciation of value of an article

.(ii) Increase or decrease in population.

(iii) The growth of bacteria if rate of growth is known.

Also Compound interest formulas find applications in various financial situations where interest is compounded periodically. Here are some specific scenarios where compound interest formulas are commonly used:

#### Exercise 7.7 class 8 solution-Examples of the exercise

Example 7.7.1. The population of a town is 15,000. If it increases at the rate of 4% per annum, then what will be the population after two years?

Solve. As population increases at the rate of 4% per year, so every new year has new population. Thus we can say it is increasing in compounded form.

Example 7.7.2 A second hand scooter was bought at a price of 24000. Its rate was depreciated by 5% per year. Find the value of scooter after two years. (Depreciation means reduction of value due to use and age of item.)

Solve: Here Price of Scooter (P) – 24000

Time – 2 years

Rate of depreciation = 5% per year

As rate is depreciating every year by 5%, So we can use amount formula of compound interest. But note it as value is decreasing so rate will be-5%.

#### Exercise 7.7 class 8 solution- exercise preview

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#### Exercise 7.7 class 8 solution- solution pdf

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