Question

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

Answer 1

Interest compounded quarterly yearly

$⟹r=\left(16\%\right)/4=4\%$ per interest period.

No.of interest period $\left(n\right)=4\left(9/12\right)=3P=Rs.15,625$

$CI=P\left[\right(1+\frac{r}{100}{)}^n-1]$

$CI=15625\left[\right(1+\frac{4}{100}{)}^3-1]=1951$

Hence, the compound interest$=Rs.1,951$.