SSC CHSL Compound Interest question with solution
Compound InterestModerate
Find the compound interest on ₹18,000 at 20% per annum for 2 years, compounded annually.
- (A)₹7,830
- (B)₹7,380
- (C)₹7,920
- (D)₹8,100
Correct answer: (C) ₹7,920
Amount after 2 years = 18000 × (1 + 20/100)² = 25920. Compound interest = amount − principal = 25920 − 18000 = 7920. Note that the simple interest for the same period would be only 7200.
Shortcut: For 2 years, effective rate = 2r + r²/100 = 44% of 18000.
About this question
- Subject
- Quantitative Aptitude
- Topic
- Compound Interest
- Exam
- SSC CHSL
- Attempts on SSC Rank
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Last reviewed on 5 Oct 2026. Spotted a mistake? See our correction policy.