Question

Find the compound interest on rs.15,625 at 16% per annum for nine moths when compounded quarterly

Answer 1

principal = ₹ 15625
rate =16% p.a
if principal is compounded quarterly rate = (16/4)%=4%
time = 9 months =9/12=3/4 yrs
amount for first 3yrs
=15625 × (1+ 4/100)^3
=₹17576
amount for next 1/4 yrs
=(17576 × 4× 1/3)/100
=₹234.35
=₹17576 + ₹234.35
=₹17810.35
total amount after 3/4 yrs =₹(17576+17810.35)
=₹35386.35
ci = amount- principal =₹(35386.35- 15625)
=₹19761.35