Fill in the blanks:
(i) The money borrowed (lent or invested) is called …………
(ii) the additional money paid by the borrower to the moneylender in lieu of the money used is called …………
(iii) In simple interest, the principal ………… for the whole loan period.
(iv) In compound interest the ………… goes on changing every conversion period.
(v) The time after which the interest is added each time to form a new principal is called …………
(vi) If the interest is compounded semi-annually then semi-annually rate is ………… of the annual rate.
Solution:
State whether the following statements are true (T) or false (F):
(i) The interest paid by the banks, post offices, insurance companies is simple interest.
(ii) Compound interest is calculated on the amount of the previous year.
(iii) In compound interest, the principal remains constant for the whole period.
(iv) The time from one specified interest period to the next period is called the conversion period.
(v) If the interest is compounded quarterly then there are 2 conversion periods in a year.
Solution:
More Solutions:
- Calculate the amount and compound interest
- Find the difference between the simple interest and compound interest
- Kamla borrowed ₹26400 from a Bank to buy a scooter
- Mukesh borrowed 775000 from a bank
- What sum of money will amount to ₹9261 in 3 years
- In what time will ₹15625 amount to ₹ 17576 at 4% p.a