Question

Find the compound interest on Rs 15,625 at 16% per anuum for nine months when compounded quarterly

Answer 1

$\mathfrak{\large{\underline{\underline{Answer :}}}}$

Rs. 6327

$\mathfrak{\large{\underline{\underline{Explanation :}}}}$

Given : Principal (P) = Rs. 15625

Rate of interest (R) = 16

Time = 9 months and compounded Half yearly

To find : Compound interest

Solution : Principal (P) = Rs. 15625

Rate of interest (R) = 16 %

Rate of Interest for 3/4 year = 3/4 * 16 = 3 * 4 = 12 %

Time = 9 months = 9/12 = 3/4 year and compounded Half yearly

So n = 3

$\boxed{amount=principal{(1 + \frac{rate\:of\:interest}{100})}^{n}}$

$a = 15625{(1 + \frac{12}{100})}^{3}$

$a = 15625{(\frac{100}{100} + \frac{12}{100})}^{3}$

$a = 15625{( \frac{112}{100})}^{3}$

$a = 15625({1.12}^{3}$

$a = 15625(1.404928)$

$a = 21952$

So Amount = Rs. 21952

$\boxed{compound\:interest=amount - principal}$

Compound Interest  = 21952 - 15625

So Compound Interest = Rs. 6327}