The compound interest on ₹ 16,000 for 9 months at 20%

The compound interest on ₹ 16,000 for 9 months at 20% per annum, interest being compounded quarterly, is

The interest is compounded quarterly.

∴ R =	20	= 5%
	4

Time = 3 quarters , P = ₹ 16,000

∴ C.I. = P			1 +	R		^T	− 1
				100

C.I. = 16000			1 +	5		³	− 1
				100

C.I. = 16000			21		³	− 1
			20

C.I. = 16000		9261 − 8000
		8000

C.I. = 16000 ×	1261	= ₹ 2522
	8000