Compound Interest
Compound Interest - compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. Applications of Compound Interest 1. In increase or decrease in population. 2. The growth of bacteria when the rate of growth is known. 3. Depreciation in the values of machines. Important Facts : 1. When time is given in days, we convert it to year by dividing it by 365. 2. When time is given in months, we convert it to year by dividing it by 12. 3. When dates are given, the day on which the sum is borrowed is not included but the day on which money is returned is included, while counting the number of days. Remark - negative sign of rate indicates the depreciation. Practice Questions 1.Find the compound interest on ₹ 5000 at 8% per annum for 2 years, compounded annually? 2.Find the amount of ₹18000 for 3 years, compounded annually at 10% per annum. Also, find the compound interest. 3.The compound interest on Rs. 30,000 at 7% pe