Q.Find the amount on ₹12,000 for 8 months at 6% per annum, compounded monthly.

Use the number of months directly as the number of periods, and divide the annual rate by 12.

Rate per month $= 6/12 = 0.5\%$. …

Here $P = ₹12{,}000$, $r = 6\%$ per annum, time $= 8$ months, compounded monthly, so the number of periods is $8$ and the rate per month is $\dfrac{r}{12} = \dfrac{6}{12} = 0.5\%$.

Step 1 — Apply the monthly formula.

Step 2 — Evaluate. $(1.005)^{8} \approx 1.040707$, so

$A \approx 12{,}000 \times 1.040707 \approx ₹12{,}488.48$ …

Converting 8 months to $8/12$ year and then multiplying by 12 again to get the number of periods is redundant and error-prone — when the compounding period is already in months and the time …