SSC CGL Compound Interest question with solution
Compound InterestModerate
Find the compound interest on ₹6,000 at 20% per annum for 2 years, compounded annually.
- (A)₹2,610
- (B)₹2,640
- (C)₹2,460
- (D)₹2,700
Correct answer: (B) ₹2,640
Amount after 2 years = 6000 × (1 + 20/100)² = 8640. Compound interest = amount − principal = 8640 − 6000 = 2640. Note that the simple interest for the same period would be only 2400.
Shortcut: For 2 years, effective rate = 2r + r²/100 = 44% of 6000.
About this question
- Subject
- Quantitative Aptitude
- Topic
- Compound Interest
- Exam
- SSC CGL
- Attempts on SSC Rank
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Last reviewed on 5 Oct 2026. Spotted a mistake? See our correction policy.