Find the amount and the compound interest on Rs 15625 for 3 years at 12% per annum,

Principal for the first year $=$ Rs. 15625

Interest for the first year $=$ Rs. $\left(\frac{15625 \times 12 \times 1}{100}\right)=$ Rs. 1875

Amount at the end of the first year $=$ Rs. $(15625+1875)=$ Rs. 17500

Principal for the second year $=$ Rs. 17500

Interest for the second year $=$ Rs. $\left(\frac{17500 \times 12 \times 1}{100}\right)=$ Rs. 2100

Amount at the end of the second year $=$ Rs. $(17500+2100)=$ Rs. 19600

Principal for the third year $=$ Rs. 19600

Interest for the third year $=$ Rs. $\left(\frac{19600 \times 12 \times 1}{100}\right)=$ Rs. 2352

Amount at the end of the second year $=$ Rs $(19600+2352)=$ Rs. 21952

$\therefore$ Compound interest $=$ Rs. $(21952-15625)=$ Rs. 6327