Find the compound interest on ₹ 31250 for 9 months at 16% per annum when the interest is calculated quarterly.

Correct option is B

Given:
Principal (P) = ₹ 31250
Rate = 16% per annum
Time = 9 months
Interest is compounded quarterly.
Formula Used:
A = $$P(1 + \frac{R}{100})^n$$​​
CI = A - P
Solution:
Since interest is compounded quarterly, adjust the rate and time:
Rate per quarter (R) = $$\frac{16\%}{4} = 4\%$$​​
Time in quarters (n) =$$\frac{9}{3}$$​ = 3 quarters
Calculate the Amount (A):
A = $$31250 × (1 + \frac{4}{100})^3$$​​
 =$$31250 × (\frac{26}{25})^3$$​​

= $$31250 × \frac{17576}{15625}$$​​
 = 2 × 17576 = 35152
Calculate the Compound Interest (CI):
CI = 35152 - 31250 = 3902
Final Answer
So the correct answer is (b)