Compound Interest (SSC)

Total Questions: 50

1. The compound interest on ₹10,000 at 20% per annum is ₹4,641. If compounded half yearly, for how many years was the principal invested? [SSC CGL Tier II (26/10/2023)]

Correct Answer: (d) 2
Solution:

2. Jonathan had borrowed a sum of money 3 years ago at 10% interest per annum compounded annually for a 5-year period, with the amount to be paid at the end of the period being ₹1,61,051. However, there is no prepayment penalty and Jonathan has received some bonus payment now, with which he has decided to clear his debt. How much does Jonathan have to pay now to clear his debt ? [SSC CPO 03/10/2023 (1st Shift)]

Correct Answer: (a) ₹1,33,100
Solution:

3. Money is doubled in a bank account in 7 years, when the Interest is compounded annually: What time in years is needed to make an amount 8 times in the bank? [SSC MTS 14/09/2023 (2nd Shift)]

Correct Answer: (a) 21
Solution:

4. A bank offers compound interest at the rate 5% per annum calculated half yearly on its deposits. A customer deposits ₹2,400 each on 1st January and 1st July of a year. Find the amount he received at the end of the year. [SSC MTS 12/09/2023 (2nd Shift)]

Correct Answer: (b) ₹4,981.50
Solution:

5. The compound interest accrued on a sum of ₹20,000 at the end of 2 years compounded annually is ₹2,050. Find the compound interest at the end of the 3rd year. [SSC CHSL 17/08/2023 (4th Shift)]

Correct Answer: (c) ₹3,152.50
Solution:

6. A deposited ₹1,56,250 at 8% simple interest for 2 years. How much more money will A have in his account at the end of two years, if at the same rate of interest the sum is invested in compound interest, compounded annually. [SSC CHSL 11/08/2023 (2nd Shift)]

Correct Answer: (b) ₹1,000
Solution:

7. A money lender claims he lends money at a simple rate of interest of 8% per annum. But he cleverly includes the interest amount in the principal when he calculates it every six months. The effective rate of interest becomes: [SSC CHSL 09/08/2023 (2nd Shift)]

Correct Answer: (a) 8.16%
Solution:

8. What is the approximate present value (in ₹ lakh) of an income of ₹2.1 lakh to be received after 2 years if the rate of interest is 5% ? [SSC CHSL 08/08/2023 (2nd Shift)]

Correct Answer: (d) 1.905
Solution:

9. What will be the present value of ₹13,230 due two years hence, when the interest is compounded at the rate of 5% per annum? [SSC CHSL 07/08/2023 (1st Shift)]

Correct Answer: (d) ₹12,000
Solution:

10. If the difference between the compound interest and simple interest on a certain sum of money for 3 years at the rate of 4% per annum is ₹76, then what is the sum ? [SSC CHSL 04/08/2023 (1st Shift)]

Correct Answer: (c) ₹15,625
Solution: