Maths Comparing Quantities part 11 (Simple Interests) CBSE Class 8 Mathematics VIII | Summary and Q&A

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March 8, 2017
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Maths Comparing Quantities part 11 (Simple Interests) CBSE Class 8 Mathematics VIII

TL;DR

This video explains the concept of simple interest and how to calculate it, using a practical example.

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Questions & Answers

Q: What is the difference between simple interest and compound interest?

Simple interest is calculated only on the principal amount, while compound interest is calculated on both the principal amount and any accumulated interest. Compound interest takes into account that interest is added to the principal over time.

Q: How is simple interest calculated?

Simple interest is calculated using the formula Principal x Interest Rate x Time / 100. The principal is the initial amount, the interest rate is given in percentage, and the time is the duration for which the principal is borrowed or invested.

Q: Does the time period affect the amount of simple interest?

Yes, the longer the time period, the higher the amount of simple interest. This is because the interest is calculated based on the principal amount, and as time increases, the interest accumulates.

Q: Can simple interest be used to calculate loans and deposits at banks?

Simple interest is not commonly used for loans and deposits at banks. Compound interest is typically used in these cases, as it takes into account the accumulation of interest over time.

Summary & Key Takeaways

  • The video discusses two types of interest: simple interest and compound interest.

  • Simple interest is calculated only on the principal amount, not on any accumulated interest.

  • The formula for calculating simple interest is Principal x Rate x Time / 100.

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