What will be the compound interest (nearest to ₹1) on a sum of ₹25,000 for 2 years at 12% p.a., if the interest is compounded 8-monthly ?

As per the given question,

Sum of amount =25000Rs.

Rate of interest=12%

Time =2 years

As per the question, interest is compounded 8-monthly, so rate of interest will be $$=\dfrac{12\times 8}{12}=8\%$$

So, total time $$= \dfrac{24}{8}=3$$

Hence, $$A=P(1+\dfrac{R}{100})^n$$

$$A=25000(1+\dfrac{8}{100})^3=25000\times\dfrac{27}{25}\times\dfrac{27}{25}\times\dfrac{27}{25}=31492.8Rs.\cong 31493Rs$$

Hence the required compound interest $$=31493-25000=6493Rs.$$