Question

In case of C.I., the principal increases every year. Does the rate of interest also vary in the case of C.I.? _____​

Answer 1

Answer:

No

Step-by-step explanation:

Compound Intrest means Intrest on Intrest. For example,

Principal-10000

Rate of Intrest (in percent)-10

Time-2 years

Then for the first year principal is- 10000

Amount for first year/Principal for second year- 11000

Amount for second year-12100

So, the principal might change but the rate of interest won't change