Exams › SSC CGL (Prelims) › General

A businessman invests Rs. 85,000 at a rate of 10% compound interest per annum, compounded annually. Find the interest for the 3rd year only.

1. Rs. 10,285
2. Rs. 9,350
3. Rs. 8,500
4. Rs. 11,250

Correct answer: Rs. 10,285

Solution

For compound interest, the interest in a particular year is calculated on the amount accumulated up to the previous year. After 2 years, the amount is 85,000 × 1.1² = 102,850, so the 3rd-year interest is 10% of this, i.e. 10,285.

Related SSC CGL (Prelims) General questions

• Find the compound interest on ₹12,000 at 8% per annum for 2 years 6 months, compounded annually.
• A certain amount invested at 15% compound interest per annum, compounded annually, becomes ₹4,235 in 2 years. What is 120% of the principal?
• A sum of ₹8000 amounts to ₹9245 in 2 years at compound interest, compounded annually. What is the annual rate of interest?
• A certain amount triples its initial value after 8 years of compound interest. How many years will it take to grow to eighty-one times its original amount?
• A sum of money invested at compound interest amounts to three times itself in 5 years. In how many years will it become 27 times itself?
• A certain sum amounts to Rs. 1,600 in two years and to Rs. 2,000 in three years at compound interest compounded annually. Find the rate of interest.

⚔️ Practice SSC CGL (Prelims) General free + battle 1v1 →