Exams › SSC CGL (Prelims) › General

A sum of money becomes Rs. 8800 after 2 years and Rs. 9680 after 3 years at compound interest. What is the rate of interest per annum?

1. 8%
2. 10%
3. 12%
4. 15%

Correct answer: 10%

Solution

The amount increases from 8800 to 9680 in one year, so the yearly growth factor is $9680/8800 = 1.1$. This means the rate is 10% per annum.

Related SSC CGL (Prelims) General questions

• The compound interest on a principal at 20% p.a. for 1.5 years, compounded annually, is ₹3,400. Find the principal.
• If the compound interest on a sum at $14\tfrac{2}{3}\%$ per annum for 3 years is ₹1,680, find the simple interest for the same period and rate.
• In how many years will Rs. 80,000 become Rs. 1,06,480 at 10% compound interest per annum?
• Find the compound interest on ₹9,500 at 11% p.a. for 2 years 6 months, compounded annually.
• If the amount at the end of the 4th year and 5th year on a certain principal at compound interest is ₹24,000 and ₹26,400 respectively, find the rate of interest per annum.
• How much compound interest will be earned on Rs. 24,000 at 16% per annum for 9 months if it is compounded quarterly?

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