What is the compound interest on a sum of ₹37500 for \(1\frac{1}{3}\)year at a rate of 12% p.a. If the interest is compounded 8-monthly?
Answer & explanation
Correct answer: option 2
\(1\frac{1}{3}\) year = 16 months, and
Rate of Interest = 12% per annum = 8% per 8 months
8% = \(\frac{2}{25}\)
Now,
ATQ,
Principal = 625R = 37500
1R = 60
C.I. = 104R = 104 × 60 = Rs.6240