Find the compound interest on Rs. 1,25,000 for 9 months at 8% per annum compounded quarterly.

Rs. 7,651

We know that,

If we are talking about compounded quarterly then R = R/4 and T = 4T

So, according to the question,

Rate R = 8% = 8/2 = 2%

Time = 9 months  = 9 × 4 = 36 months or 3 years

So, the compound interest for 3 years at 2% rate = 6.1208%

So, CI = 6.1208% of 125000 = 7651