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Grade 10 Financial Planning

Interactive step-by-step solver for mastering financial planning concepts like interest and budgeting.

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Back to Grade 10 Chapter 3 Chapter 5
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Step-by-Step Learning

Learn how to calculate interest, create budgets, and plan investments effectively.

Example 1: Simple Interest Calculation

Calculate the simple interest earned on ₹5000 invested at 6% per annum for 3 years.

Step 1: Simple Interest (SI) is calculated using the formula:
SI = (P × R × T) / 100, where P = Principal, R = Rate of Interest, T = Time.
Step 2: Given: P = ₹5000, R = 6%, T = 3 years.
Step 3: Substitute the values into the formula:
SI = (5000 × 6 × 3) / 100.
Step 4: Calculate:
SI = (90000) / 100 = ₹900.
Step 5: The simple interest earned is ₹900.
Simple Interest SI = (P × R × T) / 100 P = ₹5000, R = 6%, T = 3 years

Example 2: Compound Interest Calculation

Find the compound interest on ₹10000 at 5% per annum for 2 years, compounded annually.

Step 1: Compound Interest (CI) is calculated using:
A = P(1 + R/100)n, CI = A - P, where A = Amount, P = Principal, R = Rate, n = Time.
Step 2: Given: P = ₹10000, R = 5%, n = 2 years.
Step 3: Calculate the Amount:
A = 10000(1 + 5/100)2 = 10000(1.05)2.
Step 4: Compute:
(1.05)2 = 1.1025, A = 10000 × 1.1025 = ₹11025.
Step 5: Calculate CI:
CI = A - P = 11025 - 10000 = ₹1025.
Step 6: The compound interest is ₹1025.
Compound Interest A = P(1 + R/100)n CI = A - P P = ₹10000, R = 5%, n = 2

Example 3: Budget Planning

Create a monthly budget for a family with ₹30000 income, allocating 40% for necessities, 30% for savings, and 30% for others.

Step 1: Budgeting involves allocating income to different categories based on percentages.
Step 2: Total income = ₹30000. Calculate each category:
Necessities = 40% of 30000, Savings = 30%, Others = 30%.
Step 3: Necessities:
(40/100) × 30000 = ₹12000.
Step 4: Savings:
(30/100) × 30000 = ₹9000.
Step 5: Others:
(30/100) × 30000 = ₹9000.
Step 6: The budget is: Necessities = ₹12000, Savings = ₹9000, Others = ₹9000.
Budget Allocation Necessities Savings Others Income: ₹30000

Example 4: Comparing Investment Options

Compare the returns of ₹20000 invested at 4% simple interest vs. 4% compound interest for 3 years.

Step 1: Calculate Simple Interest:
SI = (P × R × T) / 100, P = ₹20000, R = 4%, T = 3 years.
Step 2: SI = (20000 × 4 × 3) / 100 = ₹2400.
Step 3: Calculate Compound Interest:
A = P(1 + R/100)n, CI = A - P.
Step 4: A = 20000(1 + 4/100)3 = 20000(1.04)3 = 20000 × 1.124864 = ₹22497.28.
Step 5: CI = 22497.28 - 20000 = ₹2497.28Pacificy28">
Step 6: Comparison: SI = ₹2400, CI = ₹2497.28. Compound interest yields ₹97.28 more.
Investment Comparison SI: ₹2400 CI: ₹2497.28 Compound Interest > Simple Interest

Practice Mode

Enter a financial planning problem to solve (e.g., simple interest, compound interest, or budget allocation).

Note: This solver handles simple financial calculations. Enter problems like 'Calculate SI for ₹5000 at 5% for 2 years' or 'Allocate ₹20000: 50% necessities, 30% savings, 20% others'.

Related Concepts

Explore these related financial planning concepts to deepen your understanding.

Simple Interest

Interest calculated only on the initial principal amount.

Compound Interest

Interest calculated on the principal and accumulated interest.

Budgeting

Allocating income to various expense categories.

Principal

The initial amount of money invested or borrowed.

Rate of Interest

The percentage at which interest is calculated.

Time Period

The duration for which money is invested or borrowed.

Amount

The total value including principal and interest.

Investment

Allocating money to generate returns over time.