Question

the compound interest on rs 2000 at 12% p.a is maximum when the interest is compound
a. half yearly y
b. quarterly
c. yearly
d. monthly​

Answer 1

option c is correct

plz mark me a brainliest answer

Answer 2

Answer:

The compound interest on rs 2000 at 12% p.a is maximum when the interest is compound monthly. The option 'D' is the correct answer.

Step-by-step explanation:

Step 1

The formula of compound interest is

A=P$(1+\frac{r}{n}) ^{nt}$ where

A=final amount

P=initial principal balance

r=interest rate

n=number of times interest applied per time period

t=time

Step 2

The compound interest will be maximum with the shortest period of time. Here monthly is the shortest period.

Hence, the compound interest on rs 2000 at 12% p.a is maximum when the interest is compound monthly.