Rate of interest .

Consider Principal income as .

Consider time period as year.

Find the total amount compounded quarterly.

.

For quarterly compounded .

Substitute the corresponding values in the formula.

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

Rate of interest .

Consider Principal income as .

Consider time period as years.

Find 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 annually is the best deal.

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