# A person took out a loan of 16,000 Rs.from a bank which charges interest compounded quarterly. The annual rate of interest is 10%. How much should he pay back after 9 months to settle the loan?

P = Rs 16000

r = 10%

t = 9/12

Since, the interest is charges quarterly, so n =4

$A=P(1+\frac{r}{100\times n}{)}^{n\times t}\phantom{\rule{0ex}{0ex}}=16000(1+\frac{10}{100\times 4}{)}^{\frac{9}{12}\times 4}\phantom{\rule{0ex}{0ex}}=16000(\frac{41}{40}{)}^{3}\phantom{\rule{0ex}{0ex}}=17230.25$

Regards,

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