Find the compound interest on ₹ 31250 at 16 % pa compounded quaterly for 9 months.

Given, P = ₹ 31250,
n = 9 Month = 3 quarters and
R = 16% pa = 4% per quarter
According to the formula
Amount = P(1 + R/100 )ⁿ
= 31250(1 + 4/100 )³
= 31250 x (26/25) x (26/25) x (26/25)
= ₹ 35150
∴ CI = 35152 - 31250
= ₹ 3902