SSC CGL Compound Interest question with solution
Compound InterestModerateSSC CGL 2024
Find the compound interest on ₹2,000 at 5% per annum for 2 years, compounded annually.
- (A)₹195
- (B)₹205
- (C)₹225
- (D)₹200
Correct answer: (B) ₹205
Amount after 2 years = 2000 × (1 + 5/100)² = 2205. Compound interest = amount − principal = 2205 − 2000 = 205. Note that the simple interest for the same period would be only 200.
Shortcut: For 2 years, effective rate = 2r + r²/100 = 10.25% of 2000.
About this question
- Subject
- Quantitative Aptitude
- Topic
- Compound Interest
- Exam
- SSC CGL 2024
- Attempts on SSC Rank
- Not attempted yet
Appears in: SSC CGL 2024 Tier 1 Question Paper — 9 September, Shift 2
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Last reviewed on 5 Oct 2026. Spotted a mistake? See our correction policy.