What will be the compound interest on a sum of ₹31250, at 12% compound interest (interest compounded yearly) in $2\frac{2}{3}$ years?

₹11086

For 2/3rd year ,

Compound interest = 12 %× \(\frac{2}{3}\) = 8%

From the formula for compound interest, we know,

C.I = P(1+$\frac{R}{100})^t$– P

 = 31250 [ 1 + \(\frac{12}{100}\) ]²  × [ 1 + \(\frac{8}{100}\) ] - 31250

 = 31250 [ \(\frac{28}{25}\) × \(\frac{28}{25}\) × \(\frac{27}{25}\) - 1 ]

 = 31250[ \(\frac{21168}{15625}\)  - 1 ]

= 31250 [ \(\frac{5543}{15625}\) ]

P = 11086