Question

Find the compound interest on rs 15625 for 9 months at 16% per annum compounded quarterly

Answer 1

Answer:

Principal (p) = Rs 15625

Rate (r) = 16% per annum = 16/4 = 4% (quarterly)

Time (t) = 9 months = 9/12 ×4 = 3quarters of a year

By using the formula,

A = P (1 + R/100) n

= 15625 (1 + 4/100)3

= 15625 (104/100)3

= Rs 17576

∴ CI = Rs 17576 – 15625 = Rs 1951