OP Malhotra Compound Interest Class-9 S.Chand ICSE Maths Ch-2 Solutions 2026. We Provide Step by Step Answer of Exe-2(a), Exe-2(b), Exe-2(c), Exe-2(d) with Chapter Test of S Chand OP Malhotra Maths . Visit official Website CISCE  for detail information about ICSE Board Class-9.

OP Malhotra Compound Interest Class-9 S.Chand ICSE Maths Ch-2

Simple Interest : 

The interest calculated only on the original principal amount for the entire duration of the loan or investment.

• Simple interest is calculated only on the principal amount, or on that portion of the principal amount that remains. It excludes the effect of compounding. It is denoted by S.I.
• The simple interest is calculated uniformly only on the original principal throughout the loan period.
• You do not earn interest on the interest earned during the loan period.

Formula:  Let Principal = P, Rate = R% per annum and Time T years. Then, we have:
 SI = (P×R×T)/100

Compound Interest Definition :

Compound interest is the interest calculated on the principal and the interest accumulated over the previous period. It is different from the simple interest where interest is not added to the principal while calculating the interest during the next period. Compound interest finds its usage in most of the transactions in the banking and finance sectors and also in other areas as well. Some of its applications are:

Important Remarks : 

1. If the interest is compounded Annually, then the conversion period is 1 year. The amount after 1 year becomes the principal for second year. The amount after 2 years becomes the principal for third year and so on.

2. If the interest is compounded Half-Yearly, then the conversion period is Half-Year. The amount after first half-year becomes the principal for second half-year. The amount after one year becomes the principal for the third half-year and so on.

Practice Questions on Compound Interest : Exercise-2(a)

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Compound Interest in Maths :

To understand the compound interest we need to do its Mathematical calculation. To calculate compound interest we need to know the amount and principal. It is the difference between amount and principal.

Principal: This is the money borrowed or lent out for a certain period of time is called the principal or sum.

Interest: Interest is payment from a borrower to a lender of an amount above repayment of the principal sum

Amount: The total money paid back by the borrower to the lender is called the amount.

Rate: The interest on Rs. 100 for a unit time is called the rate of interest. It is expressed in %. The interest on Rs. 100 for 1 year is called rate % per annum (abbreviated as rate % p. a.)

Formula : A = P[1 + (R/100)]^n
C.I. = Amount – Principal

Practice Questions on Compound Interest using Formula : Exercise-2(b)

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Compound Interest :

• Compound interest includes interest earned on the interest which was previously accumulated.
• Here you also earn interest over the interest accrued during the loan period.
• The difference between the final amount and the original principal is called the compound interest (abbreviated as C.I.)

Compound Interest By Using The Formulae

When Interest is Compound Annually

A = P[1 + (R/100)]^n
C.I. = Amount – Principal\

When rates are different for different years

Amount = P [1 + (R1/100)] [1 + (R2/100)] [1 + (R3/100)]

When Interest is Compounded Half-Yearly

Principal = P, Rate = R/2 % half-yearly  and  Time = 2n half-yearly

A = P [1 + {R/(2×100)}]^2n

Practice Questions on Compound Interest using Formula : Exercise-2(c)

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Growth and Depreciation

Growth : Growth means the increase in value of a quantity over time at a fixed percentage rate

Formula : A = P [1 + (R/100)]^n

Key Points

• Value increases every year
• Interest is added to principal → next year interest increases
• This is called compounding effect

Depreciation : Depreciation means the decrease in value of an asset over time at a fixed percentage rate

Formula : A = P [1 – (R/100)]^n

Key Points

• Value decreases every year
• Reduction happens on current value, not original value
• Loss becomes smaller each year

Practice Questions on Growth and Depreciation : Exercise-2(d)

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In this chapter, we study all the topics on Compound Interest and do some practice questions also. Here we solve extra practice questions on this chapter for better understanding.

Here is the link for extra practice questions on Compound Interest : Chapter Test

— : End of Compound Interest OP Malhotra S Chand Solutions :–

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