What is the compound interest on ₹4,000 for 2 years at 10% per annum, compounded annually?

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

What is the compound interest on ₹4,000 for 2 years at 10% per annum, compounded annually?

  1. ₹880
  2. ₹840
  3. ₹800
  4. ₹4,840
Answer and solution

Correct answer: B) ₹840

A = 4,000 × (1 + 10/100)² = ₹4,840; CI = A − P = ₹840.

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

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