Rate of interest .

Consider Principal income as .

Consider time period as year.

Find the total amount compounded quartely.

.

For quarterly compounded .

Substitute the corresponding values in the formula.

Therefore,the total amount after year for interest of quartely compounded is.

Rate of interest .

Consider Principal income as .

Consider time period as years.

Find the total amount compounded annually.

 .

For annually compounded .

Substitute all the values in the equation.

Therefore,the total amount after year for interest of annually compounded is.

Compare the total amounts obtained by quarterly compounded and annually compounded.

The total amount with rate of compunded quarterly is the best deal.

The total amount with rate of compunded quartery is the best deal.