Compounding is the process whereby interest is credited to an existing principal amount as well as to interest already paid. Compounding thus can be construed as interest on interest the effect of which is to magnify returns to interest over time, the so-called miracle of compounding.
The annual interest rate refers to the rate that is applied over a period of one year. Interest rates can be applied over different periods, such as monthly, quarterly, or bi-annually. However, in most cases, interest rates are annualized.
Monthly interest rate=2/12=0.1666%
So total deposit required=Amount/interest
=19/0.1666%
=19/0.00166
=11445
So option B is the correct statement
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