Ramu borrowed Rs 15625 from a finance company to buy a scooter.

Given:

$\mathrm{P}=\mathrm{Rs} 15,625$

$\mathrm{R}=16 \%$ p. a.

$\mathrm{n}=2 \frac{1}{4}$ years

$\therefore$ Amount after $2 \frac{1}{4}$ years $=\mathrm{P}\left(1+\frac{\mathrm{R}}{100}\right)^{2}\left(1+\frac{\frac{1}{4}(\mathrm{R})}{100}\right)$

$=$ Rs $15,625\left(1+\frac{16}{100}\right)^{2}\left(1+\frac{\frac{16}{4}}{100}\right)$

$=$ Rs $15,625(1.16)^{2}(1.04)$

$=$ Rs 21,866

Thus, the required amount is Rs 21,866 .