SSC MTS Compound Interest question with solution
Compound InterestModerateSSC MTS 2024
Find the compound interest on ₹18,000 at 20% per annum for 2 years, compounded annually.
- (A)₹7,380
- (B)₹7,920
- (C)₹7,200
- (D)₹7,830
Correct answer: (B) ₹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 MTS 2024
- Attempts on SSC Rank
- Not attempted yet
Appears in: SSC MTS 2024 Computer Based Examination Question Paper — 30 September, Shift 1
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Last reviewed on 5 Oct 2026. Spotted a mistake? See our correction policy.