Question

Calculate the amount and the compound interest on Rs $15625$ for $9$ month at $16$% per annual compounded quarterly.

Answer 1

$P=15625$

$\Rightarrow n=9$ months $=3$ quarter

$\Rightarrow R=16\%=4\%$ per quarter

$\Rightarrow$ Amount $=15625\times {(1+\frac{4}{100})}^3$

$=15625{(1+\frac{1}{25})}^3$

$=15625\times \frac{26}{25}\times \frac{26}{25}\times \frac{26}{25}$

$=17576$

$\Rightarrow C.F=A-P$

$=Rs.(17576-15625)$

$=Rs.1951.$

Hence, the answer is $1951.$