Growth/Appreciation & Depreciation/Decrease-Concepts-Formulae- Compound Interest- DAV Math- Class 8

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CBSE Class 8 Math - Compound Interest - Growth/Appreciation & Depreciation/Decrease-Concepts- DAV Math- Class 8

In our day to day life , we observe that there are things or entities such as population of a city, weight, height of a human being, the value of the property, increase over a period of time under normal conditions.
The relative increase in such quantities or entities is called growth.
Growth per unit of time is called the rate of growth.
The increase in any quantity is same as the compound interest.

The value of a machine or a building or any other such article, subject to wear and tear due to constant use, decreases with time.
Relative decrease in the value of such machine or building over a period of time is called its depreciation.
Depreciation per unit of time is called the rate of depreciation.
The value at any time is called the depreciated value.

For better understanding for solving questions related to Compound Interest:

For Compound Interest - Important Concepts:

For Unitary / Formula method:

Compound interest is about paying interest on the interest along with interest on principal.
Compound interest is a combination of two types of sums of money:
(a) Interest on the principal that is borrowed.
(b) Interest on the interest on the principal.

Simple interest(S.I) is always calculated on the original principal
Compound interest (C.I) is always calculated on new effective principal.

In this video, you shall learn about the following important concepts related to Compound Interest:
1. What is Compound Interest
2. Difference between Simple Interest & Compound Interest
3. Two methods to compute Compound Interest - Unitary Method & Formula Method
4. What is conversion period?
5. When Interest is compounded half-yearly
6. When interest is compounded quarterly