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SSC CGL Compound Interest question with solution

Compound InterestModerateSSC CGL 2024

Find the compound interest on ₹12,000 at 5% per annum for 2 years, compounded annually.

  1. (A)₹1,200
  2. (B)₹1,230
  3. (C)₹1,170
  4. (D)₹1,320

Correct answer: (B) ₹1,230

Amount after 2 years = 12000 × (1 + 5/100)² = 13230. Compound interest = amount − principal = 13230 − 12000 = 1230. Note that the simple interest for the same period would be only 1200.

Shortcut: For 2 years, effective rate = 2r + r²/100 = 10.25% of 12000.

About this question

Subject
Quantitative Aptitude
Topic
Compound Interest
Exam
SSC CGL 2024
Attempts on SSC Rank
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Appears in: SSC CGL 2024 Tier 1 Question Paper — 9 September, Shift 3

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Last reviewed on 5 Oct 2026. Spotted a mistake? See our correction policy.