Scribd
Upload
38 views7 pages

Grade 9 Compound Interest Notes

The document covers the concepts of Simple Interest and Compound Interest, including their formulas and applications. It details how Compound Interest can be calculated for different compounding periods: yearly, half-yearly, quarterly, and monthly. Additionally, it discusses applications of Compound Interest in appreciation, population, and depreciation problems.

Uploaded by

rishav2788
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
38 views7 pages

Grade 9 Compound Interest Notes

The document covers the concepts of Simple Interest and Compound Interest, including their formulas and applications. It details how Compound Interest can be calculated for different compounding periods: yearly, half-yearly, quarterly, and monthly. Additionally, it discusses applications of Compound Interest in appreciation, population, and depreciation problems.

Uploaded by

rishav2788
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Class Notes

Compound Interest
(using formula)
Grade 9
Topics to Be Covered

1 Simple Interest

2 Compound Interest

Final Amount
3.1. Interest compounded yearly
3 3.2. Interest compounded half-yearly
3.3. Interest compounded quarterly
3.4. Interest compounded monthly

4 Applications of Compound Interest


1. Simple Interest

Rate of Interest

Principal Time
Period
𝑷×𝑹×𝑻
Simple Interest =
𝟏𝟎𝟎

Amount = Principal + Interest


i.e., A = P + I

Simple Interest is interest on Principal.

2. Compound Interest

Compound Interest = Final Amount − Principal


i.e., C.I. = A − P

Compound Interest is interest on


Principal + Interest.
3. Final Amount

3.1. Interest compounded yearly

At fixed rate of interest, 𝑃 = Principal


𝑅 𝑛 𝑅 = Rate of Interest
𝐴 =𝑃 1+
100 𝑛 = number of years

At changing rate of interest, 𝑃 = Principal


𝑅1 𝑅2 𝑅3 𝑅1 , 𝑅2 , 𝑅3 , …
𝐴=𝑃 1+ 1+ 1+ … = Rate of
100 100 100 Interest for
different years

3.2. Interest compounded half-yearly

When rate of interest is compounded half yearly,


𝑹
𝑹→ , 𝒏 → 𝟐𝒏
𝟐

𝑅 2𝑛
𝐴 =𝑃 1+
2×100
3. Final Amount

3.3. Interest compounded quarterly

When rate of interest is compounded quarterly,


𝑹
𝑹→ , 𝒏 → 𝟒𝒏
𝟒

𝑅 4𝑛
𝐴 =𝑃 1+
4×100

3.4. Interest compounded monthly

When rate of interest is compounded monthly,


𝑹
𝑹→ , 𝒏 → 𝟏𝟐𝒏
𝟏𝟐

𝑅 12𝑛
𝐴 =𝑃 1+
12×100
4. Applications of Compound Interest

Appreciation Problems

𝑅 𝑛
Value after n years = 𝑃 1 +
100
𝑅 𝑛
Present value = Value 𝑛 years ago x 1 + 100

Population Problems

𝑅 𝑛
Population after n years = 𝑃 1 + 100
𝑅 𝑛
Present population = Population 𝑛 years ago x 1 + 100

Depreciation Problems

𝑅 𝑛
Value after n years = 𝑃 1 − 100
𝑅 𝑛
Present value = Value 𝑛 years ago x 1 − 100
Mind Map

Interests

Compound Simple
Interest Interest

Interest compounded
yearly

Interest compounded Final


half-yearly Amount
Interest compounded
quarterly

Interest compounded
monthly

You might also like