Say when compounded annually for 2 years the principal amount with interest accrued at the end of first year becomes the principal for the second year. 9423553232 12t Use a calculator to find log 16 divided by log 1005. Divide each side by log 1005.
From second month the interest starts changing.
For example if the and are positive then the will be negative. Basically The formula for Amount in Compoun interest Amount. After one year you will have 100 10 110 and after two years you will have 110 10 121. I would choose option 1.