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      Question

      What is the interest rate calculation method for the

      Sukanya Samridhi Yojana, and how is the interest compounded?
      A Simple interest is calculated annually, and it is compounded annually. Correct Answer Incorrect Answer
      B Compound interest is calculated annually, and it is compounded quarterly. Correct Answer Incorrect Answer
      C Simple interest is calculated quarterly, and it is compounded annually. Correct Answer Incorrect Answer
      D Compound interest is calculated quarterly, and it is compounded annually. Correct Answer Incorrect Answer
      E Compound interest is calculated annually, and it is compounded annually. Correct Answer Incorrect Answer

      Solution

      The SSY offers a compound interest rate which is revised quarterly by the government. The interest is calculated on an annual basis and compounded annually.

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