Multiple choice

Find the compound interest on Rs. 15,625 for 9 months at 16% per annum compounded quarterly.

  1. Rs. 1851

  2. Rs. 1941

  3. Rs. 1951

  4. Rs. 1961
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Principal = 15625, Rate = 16% per annum = 4% per quarter, Time = 9 months = 3 quarters. Amount = 15625 * (1.04)^3 = 15625 * 1.124864 = 17576. Interest = 17576 - 15625 = 1951.

AI explanation

For quarterly compounding, the rate is 4% per quarter for 3 periods. Using the compound interest amount formula A = 15625(1.04)^3, the final amount is 17576. The compound interest is the amount minus the principal: 17576 - 15625 = 1951. The compound interest is Rs 1951.

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