- AThey are equal
- BCI is always greater
- CCI is always smaller
- DIt depends on the principal
Step-by-Step Solution
Compounding takes effect only after the first conversion period, so for 1 year CI = SI.
Answer: A) They are equal
For a 1-year period (compounded annually), how does compound interest compare with simple interest at the same rate?
Class 8Compound InterestComparing Quantities
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