Which of the following alternatives would you suggest to your parents to deposit the money and why? Justify with calculation.

Question

Accepted Answer

The deposit period is years (grade 11 to after passing grade 12). . First offer ( p.a. CI): . Second offer ( p.a. compounded semi-annually, so per half-year over 4 periods): . Third offer ( p.a. simple interest): . Comparing all three, the first offer gives the highest interest (Rs. ), so I would suggest depositing according to the first offer.