Question Paper
Class / Subject: Class 8 (ICSE) · Mathematics
Chapter: Chapter 9 — Chapter 9: Simple and Compound Interest
Time Allowed: 32 minutes
Max Marks: 16
1. What is the simple interest formula? [1]
(A) I = (P × R × T) ÷ 100
(B) I = P(1+R/100)^T
(C) I = P + R + T
(D) I = P × R × T
2. What is the compound interest amount formula? [1]
(A) A = P(1 + R/100)^T
(B) A = P × R × T
(C) A = P + R + T
(D) A = P ÷ R ÷ T
3. How does simple interest behave over time? [1]
(A) It stays constant each year
(B) It grows exponentially
(C) It decreases
(D) It becomes zero
4. How does compound interest behave over time? [1]
(A) It grows because interest compounds
(B) It stays the same each year
(C) It decreases
(D) It becomes zero
5. What is the simple interest on ₹1000 at 10% for 2 years? [1]
(A) ₹200
(B) ₹210
(C) ₹100
(D) ₹2000
6. Why is compound interest higher than simple interest over time? [1]
(A) Interest is calculated on the growing total
(B) It uses a different rate
(C) It has no reason to differ
(D) Compound interest is always lower
7. Where is compound interest commonly used? [1]
(A) Savings accounts and loans
(B) Only in maths textbooks
(C) Nowhere practical
(D) Only for tests
8. Why understand both types of interest? [1]
(A) To make informed financial decisions
(B) No reason
(C) It's not useful
(D) Only for tests
9. What is the simple interest formula? [1]
(A) I = (P × R × T) ÷ 100
(B) I = P(1+R/100)^T
(C) I = P + R + T
(D) I = P × R × T
10. What is the compound interest amount formula? [1]
(A) A = P(1 + R/100)^T
(B) A = P × R × T
(C) A = P + R + T
(D) A = P ÷ R ÷ T
11. How does simple interest behave over time? [1]
(A) It stays constant each year
(B) It grows exponentially
(C) It decreases
(D) It becomes zero
12. How does compound interest behave over time? [1]
(A) It grows because interest compounds
(B) It stays the same each year
(C) It decreases
(D) It becomes zero
13. What is the simple interest on ₹1000 at 10% for 2 years? [1]
(A) ₹200
(B) ₹210
(C) ₹100
(D) ₹2000
14. Why is compound interest higher than simple interest over time? [1]
(A) Interest is calculated on the growing total
(B) It uses a different rate
(C) It has no reason to differ
(D) Compound interest is always lower
15. Where is compound interest commonly used? [1]
(A) Savings accounts and loans
(B) Only in maths textbooks
(C) Nowhere practical
(D) Only for tests
16. Why understand both types of interest? [1]
(A) To make informed financial decisions
(B) No reason
(C) It's not useful
(D) Only for tests