"Question 12 A scooter was bought at Rs 42,000. Its value depreciated at the rate of 8% per annum. Find its value after one year.
Class 8 Comparing Quantities Page 134"
Answers
The time Period after which interest is added each time to form a new principal is called the conversion period and the interest so obtained is called a compound interest.
If the conversion period is 1 year then the interest is said to be compounded annually.
The main difference between the simple interest and compound interest on a certain sum is that in the case of simple interest the principal remains constant throughout wheras in the case of compound interest it goes on changing periodically.
The above formula is the interest compounded
annually
A= P(1+r/100)^n
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Given:
Principal (P) =₹ 42,000, Rate of Interest (R) = 8%, Time (n) = 1 years
Amount (A) = P(1-R/100)^n
[Value depreciated]
A= 42000(1-8/100)¹
A=42000(1-2/25)
A= (42000×23)/25
A= 1680× 23
A= ₹ 38640
Hence, the value of the scooter after one year = ₹ 38640.
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Hope this will help you....
Answer:42000*[1-8/100]=42000*23/25=1680*38640
Step-by-step explanation:
p=42000 , r=8% , T=1YEAR AMOUNT=p(1-r/100) = 42000[1-8/100]=42000*23/25=1680*23=38640
