How to do compounding…

How to do compounding…

How to do compounding ?

I have to return Rs. One Lac to a friend of mine who had invested in a start up of mine.
As there is no angel funding yet in the firm, I would like to return the money
with a notional return to him.

In India, the returns prevailing over a period of  9 years has been as under… ( in percent per annum )
Gold… 2
Property 3
FD 10
Equity Index 12
A. There was a hope that this equity investment would give 10x returns.
B. There was a strong possibility that this equity investment would become worthless.
The actual result of the venture over the years has been in the middle of these two possibilities. The team is still working in a committed manner. It still hopes that the product will fly.
In lines of the above rate of 5% per annum might be a good return for my friend.
Now I shall try to locate a resource which tells me the figure to be paid.
Let us go to
http://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php
The figure comes to Rs. 155,132.82

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