Mathematics Part i Solutions Solutions for Class 8 Math Chapter 4 Money Math are provided here with simple step-by-step explanations. These solutions for Money Math are extremely popular among class 8 students for Math Money Math Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Mathematics Part i Solutions Book of class 8 Math Chapter 4 are provided here for you for free. You will also love the ad-free experience on Meritnation’s Mathematics Part i Solutions Solutions. All Mathematics Part i Solutions Solutions for class 8 Math are prepared by experts and are 100% accurate.

#### Page No 65:

#### Question 1:

Mahadevan took out a loan of 5,000 rupees from a tank, which charges compound interest. The rate of interest was 10% for the first year, but it was increased to 12% during the second year. How much money should Mahadevan pay at the end of two years to settle the debt?

#### Answer:

Principal, *P* = Rs.5000

Rate of interest for the first year, *R*_{1}= 10%

Rate of interest for the second year, *R*_{2}= 12%

Total amount including interest =

∴ Total amount including interest for the first year

Now, principal for the second year = Rs.5500

Total amount including interest for the second year

∴ Total amount to be paid by Mahadevan at the end of two years to settle the debt = Rs.6160

#### Page No 65:

#### Question 2:

Compute the compound interest for 25,000 rupees at 9% for 2 years.

#### Answer:

Principal, *P* = Rs.25000

Rate of interest, *R* = 9%

Time, *n* = 2 years

Total amount including interest =

∴ Total amount including interest

Compound interest = Amount − Principal

= Rs.29702.50 − Rs.25000

= Rs.4702.5

#### Page No 65:

#### Question 3:

Verghese borrowed 16,000 rupees from a bank at 8% compound interest. After 2 years, the interest rate was lowered to 6%. What is the total amount that Verghese has to repay at the end of 3 years?

#### Answer:

Principal, *P* = Rs.16000

Rate of interest for the first two years, *R*_{1 }= 8%

Rate of interest for the third year, *R*_{2} = 6%

Total amount including interest =

∴ Total amount including interest for the first two years

Now, principal for the third year = Rs.18662.40

Total amount including interest

∴Amount to be repaid by Verghese at the end of 3 years = Rs.19782.14

#### Page No 67:

#### Question 1:

Rahim, Johny and Gopu deposited 10,000 rupees each, under different schemes, in a bank which gives 8% interest. Rahim gets simple interest, Johny gets interest compounded half-yearly and Gopu gets interest compounded quarterly. Compute the total amount each of them gets back after one year and compare these amounts.

#### Answer:

Amount deposited by Rahim, Johny and Gopu,* P* = Rs.10000

Rate of interest, *R* = 8%

Time, *T* = 1 year

**For Rahim:**

Simple interest =

Amount that Rahim gets = Principal + Simple interest

= Rs.10000 + Rs.800

= Rs.10800

**For Johny:**

Interest for the first half-year = Rs

= Rs.400

Principal for the second half-year = Principal + Interest

= Rs.10000 + Rs.400

= Rs.10400

Interest for the second half-year = Rs

_{= Rs.416}

Amount Johny gets = Rs.10400 + Rs.416

= Rs.10816

**For Gopu:**

Interest for the first quarter = Rs

= Rs.200

Principal for the second quarter = Principal + Interest

= Rs.10000 + Rs.200

= Rs.10200

Interest for the second quarter = Rs

= Rs.204

Principal for the third quarter = Rs.10200 + Rs.204

= Rs.10404

Interest for the third quarter = Rs

= Rs 208.08

Principal for the fourth quarter = Rs.10404 + Rs.208.08

= Rs.10612.08

Interest for the fourth quarter = Rs

= Rs.212.24

Amount that Gopu gets = Rs.10612.08 + Rs.212.24

= Rs.10824.32

It can be observed that:

Amount received by Gopu > Amount received by Johny > Amount received by Rahim

#### Page No 67:

#### Question 2:

A person deposited 20,000 rupees in a bank which gives 6% interest compounded half-yearly. How much would he get back after 2 years?

#### Answer:

Amount deposited by the person, *P *= Rs.20000

Rate of interest, *R* = 6% compounded half-yearly

Time, *T* = 2 years

Simple interest is given by the formula

Interest for the first half of the first year = Rs

= Rs.600

Principal for the second half of the first year = Principal + Interest

= Rs.20000 + Rs.600

= Rs.20600

Interest for the second half of the first year = Rs

_{= Rs.618}

Principal for the first half of the second year = Rs.20600 + Rs.618

= Rs.21218

Interest for the first half of the second year = Rs

= Rs.636.54

Principal for the second half of the second year = Rs.21218 + Rs.636.54

= Rs.21854.54

Interest for the second half of the second year = Rs

_{= Rs.655.64}

∴Amount received by the person after two years = Rs.21854.54 + Rs.655.64

= Rs.22510.18

#### Page No 67:

#### Question 3:

Ravi deposited 50,000 rupees in a bank, which gives 6% interest, compounded quarterly. How much would he get back after 9 months?

#### Answer:

Amount deposited by Ravi, *P* = Rs.50000

Rate of interest, *R* = 6% compounded quarterly

Time,* T* = 9 months = 3 quarters

Simple interest is given by the formula

Interest for the first quarter = Rs

= Rs.750

Principal for the second quarter = Rs.50000 + Rs.750

= Rs.50750

Interest for the second quarter = Rs

= Rs.761.25

Principal for the third quarter = Rs.50750 + Rs.761.25

= Rs.51511.25

Interest for the third quarter = Rs

= Rs.772.67

∴ Amount received by Ravi after nine months = Rs.51511.25 + Rs.772.67

= Rs.52283.92

#### Page No 67:

#### Question 4:

Lathika deposited 25,000 rupees in a bank which gives 8% interest compounded half-yearly. Najma deposited the same amount at the same rate of interest, but compounded quarterly. What is the difference in the amounts they would get back after one year?

#### Answer:

Amount deposited, *P* = Rs.25000

Rate of interest = 8% compounded half-yearly

Time, *T* = 1 year

**For Lathika:**

Simple interest is given by the formula

Interest for the first half of the first year = Rs

= Rs.1000

Principal for the second half of the first year = Principal + Interest

= Rs.25000 + Rs.1000

= Rs.26000

Interest for the second half of the first year = Rs

_{= Rs.1040}

Amount received by Lathika after one year = Rs.26000 + Rs.1040

= Rs.27040

**For Najma:**

Interest for the first quarter = Rs

= Rs.500

Principal for the second quarter = Principal + Interest

= Rs.25000 + Rs.500

= Rs.25500

Interest for the second quarter = Rs

= Rs.510

Principal for the third quarter = Rs.25500 + Rs.510

= Rs.26010

Interest for the third quarter = Rs

= Rs.520.20

Principal for the fourth quarter = Rs.26010 + Rs.520.20

= Rs.26530.20

Interest for the fourth quarter = Rs

= Rs.530.60

Amount Lathika get back after one year = Rs.26530.20 + Rs.530.60

= Rs.27060.80

Difference between their amounts = Rs.27060.80 − Rs.27040

= Rs.20.80

#### Page No 68:

#### Question 1:

A man deposits 50,000 rupees in a financial company, which gives 9% interest compounded every three months. How much would he get back after one year?

#### Answer:

Amount deposited by the man, *P *= Rs.50000

Rate of interest, *R* = 9%

Time, *T* = 1 year

Simple interest is given by the formula

The interest is compounded quarterly

∴ Interest for the first quarter = Rs

= Rs.1125

Principal for the second quarter = Rs.50000 + Rs.1125

= Rs.51125

Interest for the second quarter = Rs

= Rs.1150.31

Principal for the third quarter = Rs.51125 + Rs.1150.31

= Rs.52275.31

Interest for the third quarter = Rs

= Rs.1176.19

Principal for the fourth quarter = Rs.52275.31 + Rs.1176.19

= Rs.53451.50

Interest for the fourth quarter = Rs

= Rs.1202.66

∴Amount received by the man after one year = Rs.53451.50 + Rs.1202.66

= Rs.54654.16

#### Page No 69:

#### Question 1:

The population of Kerala increases by 2% every year. The current population is 3 crores. What would be the population after 3 years?

#### Answer:

Current population of Kerala, *P* = 30000000

Rate of increase, *r* = 2%

Time, *n *= 3 years

Population after *n* years can be calculated using the formula

∴ Population after 3 years

#### Page No 69:

#### Question 2:

A TV manufacture reduces the price of a particular model by 5% every year. The current price of this model is 8000 rupees. What would be the price after 3 years?

#### Answer:

Current price of TV, *P* = Rs.8000

Rate of reduction, *r* = 5%

Time, *n *= 3 years

Price of TV after *n* years can be calculated using the formula

∴ Price of TV after 3 years

#### Page No 69:

#### Question 3:

Abu, Babu and Sabu deposited 10000 rupees each, under various schemes which give 10% interest. Abu gets interest compounded annually, Babu gets interest compounded every half-year and Sabu gets interest compound every quarter. Compute the total amount each would get after 2 years.

#### Answer:

Money deposited by Abu, Babu and Sabu, *P* = Rs.10000

Rate of interest, *r *= 10%

Time, *n* = 2 years

**For Abu:**

We know that *A* =

∴ Amount received by Abu after 2 years

**For Babu:**

Simple interest is given by the formula

Interest for the first half of the first year = Rs

= Rs.500

Principal for the second half of the first year = Principal + Interest

= Rs.10000 + Rs.500

= Rs.10500

Interest for the second half of the first year = Rs

_{= Rs.525}

Principal for the first half of the second year = Rs.10500 + Rs.525

= Rs.11025

Interest for the first half of the second year = Rs

= Rs.551.25

Principal for the second half of the second year = Rs.11025 + Rs.551.25

= Rs.11576.25

Interest for the second half of the second year = Rs

_{= Rs.578.81}

∴ Amount received by Babu after two years = Rs.11576.25 + Rs.578.81

= Rs.12155.06

**For Sabu:**

Interest for the first quarter of the first year = Rs

= Rs.250

Principal for the second quarter of the first year = Principal + Interest

= Rs.10000 + Rs.250

= Rs.10250

Interest for the second quarter of the first year = Rs

= Rs.256.25

Principal for the third quarter of the first year = Rs.10250 + Rs.256.25

= Rs.10506.25

Interest for the third quarter of the first year = Rs

= Rs.262.66

Principal for the fourth quarter of the first year = Rs.10506.25 + Rs.262.66

= Rs.10768.91

Interest for the fourth quarter of the first year = Rs

= Rs.269.22

Principal for the first quarter of the second year = Rs.10768.91 + Rs.269.22

= Rs.11038.13

Interest for the first quarter of the second year = Rs

= Rs.275.95

Principal for the second quarter of the second year = Rs.11038.13 + Rs.275.95

= Rs.11314.08

Interest for the second quarter of the second year = Rs

= Rs.282.85

Principal for the third quarter of the second year = Rs.11314.08 + Rs.282.85

= Rs.11596.93

Interest for the third quarter of the second year = Rs

= Rs.289.92

Principal for the fourth quarter of the second year = Rs.11596.93 + Rs.289.92

= Rs.11886.85

Interest for the fourth quarter of the second year = Rs

= Rs.297.17

Amount received by Sabu after two years = Rs.11886.85 + Rs.297.17

= Rs.12184.02

#### Page No 69:

#### Question 4:

A financial company claims that it charges only 20% interest on loans. But if a person takes out a loan of 100 rupees, he would get only 80 rupees, after subtracting the annual interest of 20 rupees at the outset. And he has to pay back 100 rupees after one year. What is their actual rate of interest?

#### Answer:

If a person takes a loan of Rs.100, the financial company would give him Rs.80 after subtracting the interest of Rs.20.

Principal, *P* = Rs.80

Let the actual rate of interest be *r*%.

Amount after *n* years can be calculated using the formula

Amount after an year = Rs.100

Thus, the actual rate of interest is 25%.

#### Page No 69:

#### Question 5:

Dileep and Manoj deposited the same amount under different schemes giving 10% interest. Dileep gets only simple interest, while Manoj gets interest compounded annually. After 2 years, Manoj had 50 rupees more than Dileep. How much money did each deposit?

#### Answer:

Rate of interest for Dileep and Manoj, *R *= 10%

Time, *T* = 2 years

Let the money each deposited be *P*.

**For Dileep:**

Simple interest =

Amount received by Dileep = Principal + Simple interest

= *P* +

**For Manoj:**

Amount =

Amount received by Manoj = Rs.50 + Amount received by Dileep

Thus, Dileep and Manoj deposited Rs.5000.

#### Page No 70:

#### Question 1:

A person deposits 6400 rupees in a bank, which gives 12% interest. How much interest would he get after one month? What would be the interest for one month at 6%? What if it is 3%?

#### Answer:

Principal, *P* = Rs.6400

Rate of interest, *R*_{1 }= 12%

Time, *T* = 1 month

Simple interest is given by the formula

Interest for the first month = Rs

= Rs.64

Rate of interest, *R*_{2 }= 6%

Interest for the first month = Rs

= Rs.32

Rate of interest, *R*_{3 }= 3%

Interest for the first month = Rs

= Rs.16

∴ Interest for one month at 12% = Rs.64

Interest for one month at 6% = Rs.32

Interest for one month at 3% = Rs.16

#### Page No 70:

#### Question 2:

What is the interest for 16,000 rupees at for one year? What would be the interest if the rate of interest is only.

#### Answer:

Principal, *P* = Rs.16000

Rate of interest, *R*_{1} = %

Time, *T *= 1 year

Simple interest =

Rate of interest, *R*_{2} = %

Simple interest

_{= Rs.1000}

∴ Interest for one year at % = Rs.2000

Interest for one month at % = Rs.1000

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