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

Answer: Option D

Solution

Answer: Option D

Solution:

$$\begin{array}{rl}& 12\text{months}\to 12\%\\ & 8\text{months}\to 8\%\\ & 8\%\to \frac{2}{25}\end{array}$$