Question. Find the C.I. on a sum of Rs.1600 for 9 months at 20% per annum, interest being compounded quarterly?
Options:
(A) 3377
(B) 2889
(C) 2522
(D) 2678
(E) 7111
Answer. (C)
What step-by-step reasoning justifies that answer?
Reasoning: A = 1600(21/20)3 = 2522