SSC CGL Compound Interest question with solution
Compound InterestModerate
Find the compound interest on ₹22,000 at 5% per annum for 2 years, compounded annually.
- (A)₹2,255
- (B)₹2,200
- (C)₹2,420
- (D)₹2,475
Correct answer: (A) ₹2,255
Amount after 2 years = 22000 × (1 + 5/100)² = 24255. Compound interest = amount − principal = 24255 − 22000 = 2255. Note that the simple interest for the same period would be only 2200.
Shortcut: For 2 years, effective rate = 2r + r²/100 = 10.25% of 22000.
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.