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Under simple interest the principal stays the same, but under compound interest it:

AIs halved yearly
BChanges every year
CFalls every year
DStays the same
Answer & Solution
Correct answer: B. Changes every year
1. Interest is added to the sum each year. 2. The new sum becomes next year's principal. 3. So the principal changes every year. _Source: NCERT Class 8 Mathematics, Chapter 7, Comparing Quantities._
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