What is the compound interest (in ₹) on a sum of ₹ 62,500 for 2 years at 12% p.a., if the interest is compounded 8-monthly?

16,232

Principal = Rs 62,500

Rate = 12% p.a

Time = 2 years

Interest is Compounded 8-monthly , so Rate become 2/3 times (8/12) so

Rate = 12% x \(\frac{2}{3}\) = 8% per 8 months = \(\frac{2}{25}\)

time = 2 × 3/2 = 3 (8 months)

Therefore,

Alternate:

Principal = Rs 62,500

Rate = 12% p.a

Time = 2 years

Interest is Compounded 8-monthly , so Rate become 2/3 times (8/12) so

Rate = 12% x \(\frac{2}{3}\) = 8% per 8 months

time = 2 × 3/2 = 3 (8 months)

Hence,

                    Principal    :     Amount

1st (8mnt)          25        :       27

2nd (8mnt)         25        :       27

3rd (8mnt)         25        :       27    

                      15625     :     19683

Compound Interest = Amount - Principal = 19683 - 15625 = Rs 4058

ATQ, 

Principal = 62500

15625 unit = 62500

1 unit = 4

Compound Int. = 4058 unit = 4058 x 4 = Rs.16,232