Banking

Important Questions

Class 10 Mathematics Chapter 2 ‘Banking’ is an important topic that requires thorough understanding and practice.This chapter is like your secret vault, filled with mathematical treasures that will make you a financial wizard. Within these pages, you'll find important questions that are like magical keys. They unlock the secrets of interest, rates, and the art of making money work for you. These questions are your ticket to understanding how banks function and how you can make smart financial choices. As you delve into banking class 10 ICSE questions, you'll learn how to calculate interest effortlessly, decipher the mysteries of principal, rate, and time, and discover how math plays a vital role in everyday financial decisions.

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Imagine a world where money lies stagnant, unable to grow or work for you. That's why icse class 10 maths banking chapter is incredibly important. It's your key to unraveling the financial forces that shape our modern world. In this chapter, you become a financial detective, diving into the world of interest rates, loans, and investments. Banking is more than just handling money; it's about making your money a dynamic force. These mathematical ideas of banking class 10 ICSE questions, aren't just for exams; they're life skills that empower you to thrive in the real world.

"Banking" in icse class 10 maths banking typically refers to the concept of compound interest. Compound interest is a fundamental topic in mathematics related to finance and banking. It involves the process of earning interest not only on the initial amount of money deposited or borrowed (the principal) but also on any interest that has already been earned or charged. This results in the exponential growth of the principal amount over time.

(b) ₹ 600

(c) ₹ 700

(d) ₹ 800

**Ans**. (b) ₹ 600

**Explanation:**\(MV=P×n+P×\frac{n(n+1)}{2×12}×\frac{r}{100}\)

\(\Rightarrow 7,668=P\begin{pmatrix} 12+\frac{12×(12+1)}{2×12}×\frac{12}{100}\end{pmatrix}[\because n=1 \space \displaystyle{year}=12\space \displaystyle{months}]\)

\(⇒ 7,668=P\begin{pmatrix} 12+\frac{78}{100}\end{pmatrix}\)

\(\Rightarrow 7,668=P\begin{pmatrix} 12+\frac{1,278}{100}\end{pmatrix}\)

⇒ P = 600

(b) ₹ 750

(c) ₹ 760

(d) ₹ 800

**Ans**. (c) ₹ 760

**Explanation:**we have

P = ₹ x, n=2 years = 24 months, r = 10% and

I = ₹ 1,900

We know,

I = P × \(\frac{n(n+1)}{2×12}×\frac{r}{100}\)

⇒ 1,900 = x × \(\frac{24×25}{24}\)×\(\frac{10}{100}\)

⇒ 1,900 = 2.5 x

⇒ x = 760.

(a) the monthly installment

(b) the amount of maturity.

**Explanation:**(a) Since, number of months (n) = 24 and rate of interest (r) = 6%

I = P ×\(\frac{n(n+1)}{2×12}\)×\(\frac{6}{100}\)

⇒ 1200 = P ×\(\frac{24(24+1)}{2×12}\)×\(\frac{6}{100}\)

⇒ P =\(\frac{24(24+1)}{2×12}\)×\(\frac{6}{100}\)

= ₹ 800

∴ Monthly instalment = ₹ 800 Ans.

(b) Sum deposited = ₹ 800 × 24

= ₹ 19200

Amount on maturity = ₹ 19,200 + ₹ 1,200

= ₹ 20,400 Ans.

**Explanation:**we have, n = 5 year = 5 × 12 = 60 months, r = 9% M.V. = ₹ 51607.50.

Since,

I = P×\(\frac{n(n+1)}{2×12}\)×\(\frac{r}{100}\)

= P ×\(\frac{60×61}{2×12}\)×\(\frac{9}{100}\)=\(\frac{549P}{40}\)

∴ M.V. = P

= \(\frac{2949P}{40}\)

According to the question,

\(=\frac{2949P}{40}\) = 51607.50

⇒ P =\(\frac{51607.50×40}{2949}\)

∴ P = ₹ 700.

**Explanation:**Here we have Ranajit Bhattacharya.

P = ₹ 10000, time = 6 years 6 × 12 = 72 months and we have to find r%

Clearly

MV = P × n + P ×\(\frac{(n)(n+1)}{2×12}\)×\(\frac{r}{100}\)

(i) so that we get.

8,84,250 = ₹ 10000 × 72 +\(\frac{(72)(78)}{24}\)×\(\frac{r}{100},\)

on solving we get: r% = 7.4%

Now for Lt Colonel Jayant:

P = ₹ 10000, time = 6 years 6 × 12 = 72 months and we have to find r%

His maturity value is ₹ 19.710 less than the maturity value of Mr Ranajit:

I.e. ₹ 8,84,250 - ₹ 19.710 = ₹ 8,64,540 and rate is not known. Let it be R%

Clearly, ₹ 8,64,540

= ₹ 10,000 × 72 + = ₹ 10000 ×\(\frac{(72)(78)}{24}×\frac{R}{100},\) on solving for R

We get: R% = 6.6%

So the difference between the rate% = 7.4%- 6.6% = 0.8% Ans.

Class 10 banking equips students with the knowledge and skills needed to navigate financial transactions, manage their money, and understand the workings of the banking industry. It's an essential part of their mathematical education and prepares them for financial responsibilities in adulthood. If you seek additional practice and a deeper comprehension of the topics covered in the chapter, oswal.io offers an extensive array of banking questions for class 10 ICSE to facilitate a more profound understanding of the concepts.

**Ans: **Simple interest is calculated only on the initial principal amount, while compound interest takes into account both the principal and the accumulated interest.

**Ans: ** Simple Interest (SI) can be calculated using the formula:

\(SI =\frac{P.R.T}{100},\)

where P is the principal amount, R is the rate of interest, and T is the time in years.

**Ans: **The nominal interest rate is the stated interest rate, while the effective interest rate takes into account the compounding frequency. It is the actual rate at which interest is earned or paid.

**Ans:** The total amount (A) with annual compounding can be found using the formula:

\(A= P(1 +\frac{R}{100})^T\)

**Ans:** Compound Interest (CI) is calculated using the formula:

\(A= P(1 +\frac{R}{100})^T-P,\)

where A is the final amount, P is the principal, R is the rate of interest, and T is the time in years.