SSC GD Compound Interest Questions
2 questions on Compound Interest for SSC GD, including questions from 2024 papers. Each comes with the correct answer and a worked explanation.
- Questions
- 2
- Moderate
- 2
Compound Interest questions with solutions
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
Show answer and explanation
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.
Find the compound interest on ₹8,000 at 10% per annum for 2 years, compounded annually.
- (A)₹1,640
- (B)₹1,680
- (C)₹1,600
- (D)₹1,760
Show answer and explanation
Correct answer: (B) ₹1,680
Amount after 2 years = 8000 × (1 + 10/100)² = 9680. Compound interest = amount − principal = 9680 − 8000 = 1680. Note that the simple interest for the same period would be only 1600.
Shortcut: For 2 years, effective rate = 2r + r²/100 = 21% of 8000.
Frequently asked questions
How many SSC GD Compound Interest questions can I practise here?
2 questions — 2 moderate. 2 are shown on this page with answers and explanations, and the practice set draws from all of them.
How should I practise Compound Interest for SSC GD?
Read through a few solved questions first to see the method, then take a timed practice set. Afterwards, check which questions you got wrong or spent longest on and redo those before moving on.