Interest on fixed deposit can be compounded on
AMonthly
BQuarterly
CHalf yearly
DDaily
Answer:
B. Quarterly
Read Explanation:
Interest on fixed deposits can be compounded at different intervals depending on the bank and the scheme. Common compounding frequencies include: Monthly – Some banks offer this for short-term deposits. Quarterly – Most banks commonly compound interest quarterly, which is why it’s the standard answer in many exams. Half-yearly – Used in some cases, especially older schemes. Daily – Rare for fixed deposits; more common in savings accounts.