What is the rate of compound interest, if the interest on ₹10,000 for 2 years is ₹609, when interest is compounded annually?

3% per annum

 From the formula for compound interest, we know,

C.I = P(1+$\frac{R}{100})^t$– P

Compound Interest on Rs 8000 for 2  years = 10000(1+$\frac{R}{100})^2$– 10000  

609 =  10000((1+$\frac{R}{100})^2$- 10000

10609  =  10000((1+$\frac{R}{100})^2$

\(\frac{10609}{10000}\)  = (1+$\frac{R}{100})^2$

1.0609  = (1+$\frac{R}{100})^2$

1.03 = 1 + \(\frac{R}{100}\)

\(\frac{R}{100}\) = 0.03

 R  = 3%