Question

The compound interest on two years on rs 1000 at the rate of interest 9% calculated annual is rs

Answer 1

Rs 188.10

Explanation:

The multiplier of account value is 1+9% = 1.09 each year. After 2 years, the account value has been multiplied by 1.09² = 1.1881. The amount of interest earned is the difference between this and the original account value.

$1000(1.1881) -1000 = 188.10

Rs 188.10 is the interest earned at 9% compounded annually on Rs 1000.