What will be the compound interest on a sum of Rs 25000 for 2 years at 12% pa if the interest is compounded 8 monthly?

Months in 2 years = 24 Number of times interest is compounded = 24/8 = 3 P = 25000 T= 2 years R = 12% or 0.12 N = 3, interest compounded 3 times in the time period A = P( 1+ R/N) ^ T A = 25000( 1+ 0.12/3) ^ 2 = 25000 * (1.04)^2 = 25000 * 1.0816 = 27040 Interest = A-P = 27040 - 25000 = 2040