SSC GD Compound Interest question with solution
Compound InterestModerate
Find the compound interest on ₹20,000 at 10% per annum for 2 years, compounded annually.
- (A)₹4,100
- (B)₹4,200
- (C)₹4,000
- (D)₹4,400
Correct answer: (B) ₹4,200
Amount after 2 years = 20000 × (1 + 10/100)² = 24200. Compound interest = amount − principal = 24200 − 20000 = 4200. Note that the simple interest for the same period would be only 4000.
Shortcut: For 2 years, effective rate = 2r + r²/100 = 21% of 20000.
About this question
- Subject
- Quantitative Aptitude
- Topic
- Compound Interest
- Exam
- SSC GD
- Attempts on SSC Rank
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Last reviewed on 5 Oct 2026. Spotted a mistake? See our correction policy.