Question

Find the compoud interest on Rs 15,625 for 9 months at 16% per annum, compounded quarterly.

Answer 1

Here, Principal (P) = Rs 15625
Rate (r) = 16% p.a. = 4% per quarter
Time (n) = 9 months = 3 quarters.
Now, Amount, $A=P{(1+\frac{r}{100})}^n$$=Rs15625{(1+\frac{4}{100})}^3=Rs15625{(1+\frac{1}{25})}^3$

$=Rs15625{\left(\frac{26}{25}\right)}^3=Rs15625\times \frac{26}{25}\times \frac{26}{25}\times \frac{26}{25}$$=26\times 26\times 26=Rs17576$
Since, Compound Interest = Amount - Principal
$\therefore$ C.I. Rs 17576 - Rs 15625 = Rs 1,951.