Question

When interest is compounded annually, the amount of money accumulated in one year is the same under either a simple or compound interest scenario.

a) true
b) false

Answer 1

a) true

Explanation:

In case when the interest is compounded on an annually so the amount of money that is accumulated in year 1 would remain the same if there is a simple interest or compound interest situation.

Therefore the given case should be true and hence, the same is to be considered

hence, the correct option is a. true