Final answer:
Compound interest on Rs 15,625 for 9 months at 16 percent per annum compounded quarterly requires converting the annual rate to a quarterly rate, converting the time to years, and using the compound interest formula to calculate the accumulated amount, and subtracting the principal to find the interest.
Step-by-step explanation:
To find the compound interest on Rs 15,625 for 9 months at 16 percent per annum compounded quarterly, we need to use the compound interest formula:
A = P (1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount, r is the annual interest rate (decimal), t is the time the money is invested for, in years, and n is the number of times that interest is compounded per year.
In this case, since the interest is compounded quarterly, n would be 4. To find the compound interest (CI), we subtract the principal (P) from the total accumulated amount (A).
The interest rate (r) needs to be converted from a percentage to a decimal, which would be 0.16, and the time (t) is 9 months, which is 9/12 years. Plugging the given values into the formula, we calculate A and then subtract P to find the CI. This needs to be done step by step, following the compound interest calculations, to get the correct figure.