compound interest problem. i am able to calculate for 1year but not for 1 month. Do we take 768 as the principal to calculate for 1 month?

Would the principal really change if you only had the account for 1 month or 1year and 1 month?
How many times will the interest be calculated in 1 year 1 month?
 
This is kind of a goofy problem unless the problem says explicitly how interest is to be calculated for a stub month. But the answer of whether you use 768 as the principal when calculating the interest due for the stub month is not 768. The whole point of compound interest is that the amount of principal changes each compounding period due to accumulated interest.
 
I don't see this as calculating interest for a "stub month". It just means that the period is 13/12 year. Since interest is "compounded quarterly, set t= (13/12)(4)= 13/3 in the compound interest formula.. And, of course the interest rate per quarter is 100/4= 25% (which is still an outrageous interest rate).
 
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