Question

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

• A. Rs. 1851
• B. Rs. 1941
• C. Rs. 1951
• D. Rs. 1961

Answer 1

The correct option is C Rs. 1951

Given,

Principal = $Rs.15625$
Time = $9$ months = $3$ Quarters
Rate of interest = $16$ % per annum = $4$ % per quarter

To find out the Compound Interest, we first need to the find out the Amount.

Amount = $15625\times (1+\frac{4}{100}{)}^3$
= $15625\times \frac{104}{100}\times \frac{104}{100}\times \frac{104}{100}$
= $15625\times \frac{26}{25}\times \frac{26}{25}\times \frac{26}{25}$
= $17576$
C.I. = $17576-15625$ = $Rs.1951$