Question

For a fixed Principal P and a fixed rate of annual interest R%, in which of the following cases will the Simple Interest (SI) and Compound Interest (CI) be the same?

(A) SI for 2 years, CI for 2 years (compounded annually).
(B) SI for 2 years, CI for 1 year (compounded semi-annually).
(C) SI for 1 year, CI for 1 year (compounded semi-annually).
(D) SI for 1 year, CI for 1 year (compounded annually)

Answer 1

Step-by-step explanation:

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answer A is correct

Answer 2

Correct option is B)

Case 1. C>S

This is possible if interest is compounded quarterly or half-yearly.

Case 2. C=S

This is possible if interest is compounded yearly.

Case 3. C<S

It can not be true because simple interest cannot be greater than compound interest.

Hence, Option B is correct option.