Mathematics
If the number of conversion periods ≥ 2, then the compound interest is
less than simple interest
equal to simple interest
greater than or equal to simple interest
greater than simple interest
Compound Interest
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Answer
When the number of conversion periods ≥ 2, then the compound interest is greater than simple interest.
As, in compound interest the interest is always calculated on the compounded principal whereas in simple interest, the interest is calculated on the initial principle so for conversion periods ≥ 2 compound interest will be greater than simple interest.
Hence, Option 4 is the correct option.
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