2. ➝What is this?
➝What is the cost
of the
chocolate?
➝If I sell this
chocolate to
someone for
rupees 20, what
will happen?
2
3. Profit and loss
Selling price
The price, at which
an item is sold, is
called its selling
price . (SP)
3
Cost price
The price, at
which an item
is purchased, it
is called its cost
price. (CP)
5. “
➝Profit or gain
When the selling price more than the
cost price,then there is profit or gain.
Profit or gain = selling price – cost
price
➝Loss
When the selling price is less than the
cost price,then there is a loss.
Loss = cost price – selling price 5
8. Compound interest
Compound interest is
interest calculated not
only on the original
principle, but also on any
interest that has already
been earned.
8
9. 9
An interest of $10000 for 3 years at 6% interest compounded annually
11. “
➝Where, A is the amount
➝P is the principal
➝r is the rate of interest
COMPOUND INTEREST = Amount - principal
11
12. 12
1.The principal
amount remains
the same every
year.
1.The interest
for any year is
the same as
that for any
other year.
2.The interest
for different
years is not the
same
2.The amount
at the end of
one year is the
principal for the
next year
Difference
between
Simple and
compound
interest
