SSC CGL Compound Interest question with solution
Compound InterestModerate
Find the compound interest on ₹16,000 at 10% per annum for 2 years, compounded annually.
- (A)₹3,360
- (B)₹3,280
- (C)₹3,200
- (D)₹3,520
Correct answer: (A) ₹3,360
Amount after 2 years = 16000 × (1 + 10/100)² = 19360. Compound interest = amount − principal = 19360 − 16000 = 3360. Note that the simple interest for the same period would be only 3200.
Shortcut: For 2 years, effective rate = 2r + r²/100 = 21% of 16000.
About this question
- Subject
- Quantitative Aptitude
- Topic
- Compound Interest
- Exam
- SSC CGL
- Attempts on SSC Rank
- Not attempted yet
More SSC CGL Compound Interest questions
Last reviewed on 5 Oct 2026. Spotted a mistake? See our correction policy.