Calculate the compound interest on Rs. 6250 for 9 months at the rate of 10% compound interest per annum compounded at the interval of 3 months.

Explanation

Here the principal is R. 6250
The rate of compound interest is 10%. Time `=9` months` =9/12` year `=3/4` year.
Since the interest is compounded at the interval of 3 months, the period is 4.
`:.` The amount of Rs. 6250 in 9 months at the rate of 10% per annum
`=Rs. 6250xx(1+(10/4)/100)^(3/4xx4)`
`=Rs. 6250xx(1+10/(4xx100)^(3)`
`=Rs. 6250xx((40+1)/40)^(3)=Rs. 6250xx(41/40)^(3)`
`=Rs. 6250xx(41xx41xx41)/(40xx40xx40)\Rs. 3760.57` (approx)
`:.` The compound interest `=Rs. (6730.57-6250)=Rs. 480.57`
Hence the compound interest of Rs. 6250 in 9 months is Rs. 480.57 (approx).