What is the compound interest on ₹20,000 for 2 years at 20% per annum, compounded annually?

Compound Interest · Quantitative Aptitude · Medium · Practice for SSC CGL Tier 1

What is the compound interest on ₹20,000 for 2 years at 20% per annum, compounded annually?

  1. ₹8,800
  2. ₹9,000
  3. ₹8,000
  4. ₹28,800
Answer and solution

Correct answer: A) ₹8,800

A = 20,000 × (1 + 20/100)² = ₹28,800; CI = A − P = ₹8,800.

Learn the method: Compound Interest rules and worked examples · SSC CGL Tier 1 Quantitative Aptitude

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