What would be compound interest on Rs.16000 at 20% per annum for 9 months, compounded quarterly?

Question

If difference between the compounded interest and the simple interest on a certain sum at 10% per annum for 2 years is Rs.52, then what would be the the sum?

Answer 1

Converting annual interest rates to quarterly we get
20/4 = 5 percent.
Now there are three compounds (9 months has 3 sets of 3 months) so the final amount can be
Calculated as follows

16000*(1.05)^3 = 18522
18522 - 16000 = Compound interest = 2522.