SSC CHSL Compound Interest question with solution
Compound InterestModerateSSC CHSL 2024
Find the compound interest on ₹20,000 at 5% per annum for 2 years, compounded annually.
- (A)₹1,950
- (B)₹2,050
- (C)₹2,250
- (D)₹2,200
Correct answer: (B) ₹2,050
Amount after 2 years = 20000 × (1 + 5/100)² = 22050. Compound interest = amount − principal = 22050 − 20000 = 2050. Note that the simple interest for the same period would be only 2000.
Shortcut: For 2 years, effective rate = 2r + r²/100 = 10.25% of 20000.
About this question
- Subject
- Quantitative Aptitude
- Topic
- Compound Interest
- Exam
- SSC CHSL 2024
- Attempts on SSC Rank
- Not attempted yet
Appears in: SSC CHSL 2024 Tier 1 Question Paper — 2 July, Shift 1
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Last reviewed on 5 Oct 2026. Spotted a mistake? See our correction policy.