Given,
Principal = Rs. 15625
Rate = 16% per annum \(=\frac{16}{4}\) = 4% quarterly
Time = 9 months \(=\frac{9}{12}\) years
\(=\frac{9}{12}\times{4}\) = 3 quarters
Hence,
Compound interest \(={P}[({1}+\frac{R}{100})^T-{1}]\)
\(={15625}[({1}+\frac{4}{100})^3-{1}]\)
\(={15625}[(\frac{26}{25})^3-{1}]\)
= \({15625}\times\frac{1951}{15625}\)
= Rs. 1951