Question

The compound interest is always same whether there is a depreciation or appreciation.

• A. True
• B. False

Answer 1

The correct option is B

False

The compound interest changes on depreciation or appreciation in the rate of interest:

A = P × ${[1+\frac{R}{100}]}^n$ (for appreciation)

A = P × ${[1-\frac{R}{100}]}^n$ (for depreciation)