Bank X

Investment 1,000,000
Tenure 3 Year
Nippon Debt Fund 10%
Simple interest

Tenure Interest Principal

1 100,000 1,000,000
2 100,000 1,000,000
3 100,000 1,000,000

Total Interest 300,000

principal 1,000,000
Total Income 1,300,000
Bank y

Investement 1,000,000
Tenure 3 year
Midcap Equity Mutual Fun 8%
Compounding Interest

Tenure Interest Initial InvestmentNew Investment

1 80,000 1,000,000 1,080,000
2 86,400 1,080,000 1,166,400
3 93,312 1,166,400 1,259,712

Total Interest 259,712

Principal 1,000,000
Total income 1,259,712
 Option Amount Option Amount

Bank X 1,000,000 Bank Y 1,000,000

Simple 10% Compound 8%
Net Earning 1,300,000 1,259,712

Option be choose 1,300,000

Mr ram Should Choose Option "X" Because its total income more than option"Y"