What is the compound interest of ₹ 15,625 for 9 months when the rate of interest is 16% per annum and the interest is payable quarterly?

Explanation

The given sum (P) = 15625 Time (t) = 9 month rate of interest (r) = 16% if the interest is payable quarterly than the interest rate for a quarter– 12 m → 16% 3m → 4% and No. of quarter in 9 month = 3 We know that– A = $P(1 + \frac{r}{100})^t$ A = $15625 \times (1 + \frac{4}{100})^3$ = $15625 \times \frac{26}{25} \times \frac{26}{25} \times \frac{26}{25}$ A = 17576 Now total interest = A – P = 17576 – 15625 Total Interest = Rs. 1951