Compound interest is always greater than or equal to simple interest

conversion

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

False

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A
conversion

In compound interest the interest is calculated after adding the interest of the previous year in the principal amount , hence it is always greater than simple interest.

Both compound interest and simple interest is equal only if the time is 1 year.

Suggest Corrections

Similar questions

Compound interest acquired is always greater than simple interest.

Question 53

Simple interest on a given amount is always less than or equal to the compound interest on the same amount for the same time period and at the same rate of interest per annum.

Q. State true or false. Give reason.

Average propensity to save is always greater than zero.

Q. Compound interest is always lesser than simple interest when calculated on the same principal, time period and rate of interest.

The displacement is always greater than or equal to distance.

Join BYJU'S Learning Program

Compound interest is always greater than or equal to simple interest

The correct option is A conversion In compound interest the interest is calculated after adding the interest of the previous year in the principal amount , hence it is always greater than simple interest. Both compound interest and simple interest is equal only if the time is 1 year.

The correct option is A
conversion

In compound interest the interest is calculated after adding the interest of the previous year in the principal amount , hence it is always greater than simple interest.

Both compound interest and simple interest is equal only if the time is 1 year.