Question

Find the compound interest on Rs15,625 at 16% per annum for nine months when compounded quarterly.

Answer 1

compound interest

=

P

(

1

+

R

/

4

100

)

4

T

−

P

=

15625

(

1

+

16

/

4

100

)

4

×

9

12

−

15625

=

15625

(

1

+

1

25

)

3

−

15625

=

15625

(

26

25

)

3

−

15625

=

(

1562

×

26

×

26

×

26

25

×

25

×

25

)

−

15625

=

17576

−

15625

=

1951