## Chapter 14 Banks and Simple Interest

Question 1.

At a rate of 10 p.c.p.a., what would be the interest for one year on Rs 6000?

Solution:

Principal Amount = Rs 6000

Rate of Interest = 10 p.c.p.a.

Let interest on principal Rs 6000 be Rs x.

By taking ratio of the interest to the principal for both, we obtain an equation x 10

∴ The interest for one year is Rs 600.

Question 2.

Mahesh deposited Rs 8650 in a bank at a rate of 6 p.c.p.a. How much money will he get at the end of the year in all?

Solution:

Principal Amount = Rs 8650

Rate of interest = 6 p.c.p.a.

Let interest on principal Rs 8650 be Rs x

By taking ratio of the interest to the principal for both, we obtain an equation

∴ Amount received at the end of the year = Principal amount + Interest

= Rs 8650 + Rs 519

= Rs 9169

∴ Mahesh will get Rs 9169 at the end of the year.

Question 3.

Ahmad Chacha borrowed Rs 25,000 at 12 p.c.p.a. for a year. What amount will he have to return to the bank at the end of the year?

Solution:

Principal Amount = Rs 25,000

Rate of interest = 12 p.c.p.a.

Let interest on principal Rs 25,000 be Rs x

By taking ratio of the interest to the principal for both, we obtain an equation

Amount to be returned to the bank at the end of the year = Principal Amount + Interest

= Rs 25,000 + Rs 3,000

= Rs 28,000

Ahmad Chacha has to return Rs 28,000 to the bank at the end of the year.

Question 4.

Kisanrao wanted to make a pond in his field. He borrowed Rs 35,250 from a bank at an interest rate of 6 p.c.p.a. How much interest will he have to pay to the bank at the end of the year?

Solution:

Principal Amount = Rs 35,250

Rate of interest = 6 p.c.p.a.

Let interest on principal Rs 35,250 be Rs x

By taking ratio of the interest to the principal for both, we obtain an equation

∴ Kisanrao will have to pay an interest of Rs 2115 to the bank at the end of the year.

**Intext Questions and Activities**

Question 1.

Study the figure given below and answer the following questions (Textbook pg. no. 74)

- In the above picture, who are the people shown to be using bank services?
- What does the symbol on the bag in the centre stand for?
- What do the arrows in the given picture tell you?

Solution:

- Students, farmers, Women’s savings groups, industrialists / professionals and traders / businessmen are shown to be using bank services.
- The symbol on the bag in the center stands for rupees.
- The arrows tell us about the monetary transactions taking place. In simple words, it explains the give and take relationship.

Question 2.

Visit the Bank (Textbook pg. no. 74)

- Teachers should organise a visit to a bank. Encourage the children to obtain some preliminary information about banks.
- Help them to fill some bank forms and slips for withdrawals and deposits.
- If there is no bank nearby, teachers could obtain specimen forms and get the children to fill them in class.
- Give a demonstration of banking transactions by setting up a mock bank in the school.
- Invite participation of parents who work in banks or other bank employees to give the children more detailed information about banking.

Solution:

(Students should attempt this activity with the help of their teacher/parents.)