Find the Compound Interest on Rs. 15,625 for 9 months at 16% per annum compounded quarterly?

A. Rs. 1851
B. Rs. 1941
C. Rs. 1951
D. Rs. 1961

Explanation:

P = Rs. 15625, n = 9 months = 3 quarters, R = 16% p.a. per quarter.

Amount = [15625 * (1 + 4/100)³]
= (15625 * 26/25 * 26/25 * 26/25) = Rs. 17576 C.I. = 17576 – 15625 = Rs. 1951.

Correct Answer: Rs. 1951 ✔

Last Updated: February 07, 2020