Q1
What is the simple interest formula?
AI = (P × R × T) ÷ 100
BI = P(1+R/100)^T
CI = P + R + T
DI = P × R × T
ICSEClass 8 (ICSE)MathematicsCh 9 · Topic 2
Practice and Revision - Simple and Compound Interest
Let us practise and revise what we learned about simple and compound interest. Simple interest is calculated only on the principal, while co
Core concept
Simple interest formula: I = (P × R × T) ÷ 100, where the interest amount stays the same each year based on the original principal.
How it works
Compound interest formula: A = P(1 + R/100)^T, where the amount grows because interest is calculated on the growing total each year.
Why it matters
For example, ₹1000 at 10% simple interest for 2 years earns ₹200, while compound interest earns ₹210 (since the second year's interest is on ₹1100).
Key detail
Compound interest is commonly used in savings accounts, loans, and investments, as it reflects real financial growth over time.
Exam highlight
Key diagram
Keywords worth remembering
Trending
simple and compound interesticse class 8
Most searched
ICSE class 8 simple and compound interest
Quick revision
Study resources
Notes & downloads
Quick notes
• Simple interest: I = (P × R × T) ÷ 100.
• It stays constant each year, based on original principal.
• Compound interest: A = P(1 + R/100)^T.
• It grows because interest compounds on the total.
• ₹1000 at 10% for 2 years: simple=₹200, compound=₹210.
• Compound interest reflects real financial growth.
• It's used in savings accounts and loans.
• Understanding both helps financial decisions.