What will be the compound interest on a sum of Rs 31,250 for 2 years at 12% p.a. If the interest is compounded 8 monthly?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Rs 8116.
12% / 12 month = [8% for 8 months]
Cycles in 2 yrs
31250 → 8%/2500 → 8% / 2700 → (8% / 2916) x
x = 2916 + 2700 + 2500 = 8116