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The time period after which interest forms a new principal is called the:
ACorrection period
BCompletion period
CConversion period
DCollection period
Answer & Solution
Correct answer: C. Conversion period
1. It may be a year, a half year or a quarter.
2. At its end the interest joins the principal.
3. It is the conversion period.
_Source: NCERT Class 8 Mathematics, Chapter 8, Comparing Quantities._
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