Rs. 6000 for 2 years at 9% per annum compounded annually.
Present value = Rs.6000
Interest rate = 9% per annum
Time = 2 years
Amount (A) = P (1 + R/100)n [Where, P = Present value
R = Annual interest rate
n = Time in years]
∴ A = 6000 (1 + 9/100)2
⇒ A = 6000 (109/100)2
⇒ A = 6000 × 109/100 × 109/100
⇒ A = 6 × 109 × 109/10
⇒ A = 7128.6
∴ Amount = Rs.7128.6
∴ Compound interest = Rs.(7128.6 – 6000)
= Rs.1128.6