Question

find the CI on the rupees 15625 for 9 months at 16% per annum compounded quarterly

Answer 1

use the formula
CI=P[(1-R/100)^n-1]
where n is the number of years

Answer 2

Given P = 15625, n = 9, R = 16%.(4 - compounded quaterly).

We know that A = P(1+r/100)^n

                            = 15625(1+4/100)^4

                            = 15625 * 26/25 * 26/25 * 26/25 * 26/25

                            = 17576


C.I = 17576 - 15625

     = 1951.


Hope this helps!   :)