SSC CGL Compound Interest question with solution
Compound InterestModerateSSC CGL 2023
Find the compound interest on ₹10,000 at 5% per annum for 2 years, compounded annually.
- (A)₹1,025
- (B)₹1,125
- (C)₹975
- (D)₹1,000
Correct answer: (A) ₹1,025
Amount after 2 years = 10000 × (1 + 5/100)² = 11025. Compound interest = amount − principal = 11025 − 10000 = 1025. Note that the simple interest for the same period would be only 1000.
Shortcut: For 2 years, effective rate = 2r + r²/100 = 10.25% of 10000.
About this question
- Subject
- Quantitative Aptitude
- Topic
- Compound Interest
- Exam
- SSC CGL 2023
- Attempts on SSC Rank
- Not attempted yet
Appears in: SSC CGL 2023 Tier 1 Question Paper — 14 July, Shift 1
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Last reviewed on 5 Oct 2026. Spotted a mistake? See our correction policy.