Simple and Compound Interest Questions For SSC CGL 2025

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Simple Interest And Comount Interest In SSC CGL

The Questions related to Simple Interest and Compound Interest are most commonly asked in most competitive exams conducted by the Staff Selection Commission. It is a scoring topic if you can grasp the basic concepts. In this blog, we will be providing simple and compound interest questions that will be beneficial for the SSC CGL Exam 2025 preparation.

SSC CGL Exam 2025 – Overview

The SSC CGL notification was released on 9th June 2025 for 14,582 vacancies. The SSC CGL Tier-I Exam 2025 is scheduled to be held from 13th to 30th August 2025. Check the key details in the table below:

Particulars	SSC CGL 2025 Details
Name	Staff Selection Commission Combined Graduate Level (SSC CGL)
Conducted by	Staff Selection Commission (SSC)
Exam Level	National
Frequency	Yearly
Vacancies	14,582 vacancies
Exam Mode	Online
Exam Duration	Tier-I: 60 minutes, Tier-II: 2 hours 15 minutes (Paper-I)
Purpose of Exam	To select candidates for Group B and C posts in Government Departments
Language	Multilingual
Exam Helpdesk No.	011-69999845
Official Website	ssc.gov.in

What is Simple Interest?

Simple Interest is the amount earned or paid only on the original principal over a period of time. It does not include interest on interest.

Formula:
Simple Interest = (P × R × T) / 100

Where:
• P = Principal (initial amount)
• R = Rate of interest per annum (%)
• T = Time period in years

This formula is commonly used in SSC CGL exams for quick and direct calculations.

What is Compound Interest?

Compound Interest is the interest calculated not only on the principal amount but also on the interest earned in previous periods. It grows faster than Simple Interest over time.

Formula:
Compound Interest = P × (1 + R/100)^T – P

Where:
• P = Principal (initial amount)
• R = Annual interest rate (%)
• T = Time period in years

This formula is useful for solving questions in SSC CGL Tier 1 and Tier 2 exams.

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Common Mistakes Students Make in SSC CGL Exam

Every year, many SSC CGL aspirants lose marks due to avoidable errors. Being aware of these mistakes can help you stay ahead and improve your final score.

Ignoring exam pattern updates – Not checking the latest syllabus or changes in the Tier structure can lead to poor preparation.
Skipping mock tests – Without regular mocks, students fail to build exam temperament, time management, and speed.
Not revising basics – Weak foundational knowledge in Maths, English grammar, or reasoning concepts leads to confusion in tricky questions.
Guesswork without elimination – Blindly marking answers in negative marking sections results in unnecessary loss of marks.
Time mismanagement during the exam – Spending too much time on one section (like Quant) often leaves less time for others.
Ignoring Tier 2 early on – Focusing only on Tier 1 without planning ahead for Tier 2 reduces chances of final selection.
Not reading questions carefully – Overlooking keywords like “not”, “except”, or specific conditions causes silly mistakes.
Over-relying on short tricks – Using tricks without understanding the logic can backfire, especially in moderate to tough-level questions.

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SSC CGL Simple Interest and Compound Interest Questions

To help you prepare for the upcoming SSC CGL 2025 exam, here are important practice questions based on the latest pattern. These questions will help you revise important formulas, improve speed, and strengthen your conceptual clarity.

Q1. A sum of Rs. 12,000, at compound interest becomes double after 5 years. How much will it be after 20 years?
A) Rs. 1,20,000
B) Rs. 1,44,000
C) Rs. 1,92,000
D) Rs. 1,50,000
Correct Answer: C

Q2. At what rate of compound interest per annum will a sum of Rs 20000 become Rs 23328 in 2 years?
A) 8 per cent
B) 12 per cent
C) 24 per cent
D) 16 per cent
Correct Answer: A

Q3. What will be the simple interest on Rs. 6,000 at 5% per annum for 3 years?
A) Rs. 900
B) Rs. 1,000
C) Rs. 850
D) Rs. 1,200
Correct Answer: A

Q4. The difference between the compound interest and simple interest on Rs. 10,000 at 10% per annum for 2 years is:
A) Rs. 100
B) Rs. 120
C) Rs. 150
D) Rs. 200
Correct Answer: B

Q5. If the compound interest on Rs. 10,000 for 2 years is Rs. 2,100, what is the rate of interest per annum?
A) 9%
B) 10%
C) 12%
D) 11%
Correct Answer: C

Q6. What sum will earn a simple interest of Rs. 4800 in 4 years at the rate of 12% per annum?
A) Rs. 10,000
B) Rs. 12,000
C) Rs. 8,000
D) Rs. 15,000
Correct Answer: A

Q7. A sum of Rs. 6250 is borrowed at 8% compound interest per annum. What will be the amount after 2 years?
A) Rs. 7290
B) Rs. 7200
C) Rs. 7296
D) Rs. 7150
Correct Answer: C

Q8. A man deposited Rs. 5000 in a bank and got Rs. 600 as interest after 3 years. What is the rate of simple interest?
A) 4%
B) 5%
C) 6%
D) 8%
Correct Answer: C

Q9. The compound interest on Rs. 20,000 for 2 years is Rs. 4,200. What is the annual interest rate?
A) 10%
B) 12%
C) 15%
D) 20%
Correct Answer: B

Q10. In how many years will Rs. 5000 amount to Rs. 6200 at 8% per annum simple interest?
A) 3 years
B) 2.5 years
C) 4 years
D) 5 years
Correct Answer: C

Q11. Find the compound interest on Rs. 16000 at 10% per annum for 2 years.
A) Rs. 3360
B) Rs. 3500
C) Rs. 3000
D) Rs. 3200
Correct Answer: A

Q12. What is the simple interest on Rs. 4000 at 6% per annum for 5 years?
A) Rs. 1,000
B) Rs. 1,100
C) Rs. 1,200
D) Rs. 1,300
Correct Answer: C

Q13. The compound interest on Rs. 8000 at 5% per annum for 2 years is:
A) Rs. 820
B) Rs. 820.50
C) Rs. 812
D) Rs. 800
Correct Answer: B

Q14. A sum of Rs. 10,000 becomes Rs. 11,025 in 1 year at compound interest. What is the rate of interest?
A) 10%
B) 12%
C) 8%
D) 9%
Correct Answer: A

Q15. If the simple interest on Rs. 7500 in 3 years is Rs. 1,800, what is the rate of interest per annum?
A) 8%
B) 7%
C) 6%
D) 9%
Correct Answer: A

Q16. A sum becomes Rs. 8,820 after 2 years and Rs. 9,261 after 3 years under compound interest. Find the rate.
A) 5%
B) 6%
C) 4%
D) 8%
Correct Answer: A

Q17. What sum will amount to Rs. 6,720 in 2 years at 10% compound interest?
A) Rs. 5500
B) Rs. 5600
C) Rs. 5800
D) Rs. 6000
Correct Answer: D

Q18. A certain sum amounts to Rs. 6,400 in 2 years and to Rs. 7,040 in 3 years under compound interest. What is the rate?
A) 9%
B) 8%
C) 10%
D) 12%
Correct Answer: C

Q19. The simple interest on Rs. 7500 at 8% per annum is Rs. 2,400. Find the time.
A) 4 years
B) 3 years
C) 2.5 years
D) 5 years
Correct Answer: D

Q20. Find the compound interest on Rs. 6400 for 3 years at 5% per annum.
A) Rs. 1008
B) Rs. 1012
C) Rs. 1015
D) Rs. 1050
Correct Answer: A

Q21. A person invests Rs. 10,000 at 10% compound interest compounded annually. What will be the amount after 3 years?
A) Rs. 13,310
B) Rs. 13,000
C) Rs. 13,100
D) Rs. 13,500
Correct Answer: A

Q22. A sum of money becomes Rs. 7,744 in 2 years and Rs. 8,518.40 in 3 years at compound interest. Find the rate.
A) 8%
B) 10%
C) 9%
D) 6%
Correct Answer: C

Q23. What is the compound interest on Rs. 5,000 for 3 years at 10% per annum?
A) Rs. 1,500
B) Rs. 1,610
C) Rs. 1,655
D) Rs. 1,650
Correct Answer: B

Q24. A person borrowed Rs. 4000 for 2 years at simple interest and paid Rs. 480 as interest. What is the rate of interest?
A) 5%
B) 6%
C) 7%
D) 8%
Correct Answer: D

Q25. At what rate will Rs. 6,250 amount to Rs. 7,812.50 in 3 years compounded annually?
A) 8%
B) 9%
C) 10%
D) 12%
Correct Answer: C

Q26. A sum becomes Rs. 13,310 after 3 years at compound interest. If the rate is 10% per annum, find the principal.
A) Rs. 10,000
B) Rs. 10,500
C) Rs. 11,000
D) Rs. 9,500
Correct Answer: A

Q27. What will be the CI on Rs. 12,000 at 5% per annum for 2 years compounded annually?
A) Rs. 1,230
B) Rs. 1,250
C) Rs. 1,260
D) Rs. 1,215
Correct Answer: D

Q28. A sum doubles itself in 5 years at compound interest. In how many years will it become 8 times?
A) 15
B) 10
C) 20
D) 12
Correct Answer: A

Q29. If a sum amounts to Rs. 6,250 in 2 years and Rs. 6,875 in 3 years at compound interest, find the rate.
A) 9%
B) 10%
C) 8%
D) 6%
Correct Answer: B

Q30. A sum of money is invested for 2 years at compound interest. The interest for the second year is Rs. 330 and for the first year is Rs. 300. Find the rate.
A) 8%
B) 10%
C) 12%
D) 11%
Correct Answer: B

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SSC CGL Simple and Compound Interest – FAQs

Q1. Are Simple Interest and Compound Interest important for SSC CGL?

Ans: Yes, they are frequently asked in both Tier 1 and Tier 2 exams.

Q2. What is the basic formula for Simple Interest?

Ans: SI = (P × R × T) / 100

Q3. Is CI always greater than SI for the same P, R, T?

Ans: Yes, except when time is 1 year or rate is 0%.

Q4. What topics should I study before learning SI and CI?

Ans: Basics of percentages and ratio-proportion.

Q5. What is the most common mistake in CI questions?

Ans: Applying SI formula or forgetting compounding effect.

Aadib Nagori

Hello, I’m a content writer working at Oliveboard. I focus on creating blogs, articles, and educational content that’s simple, clear, and saves time for readers. I believe in writing that adds real value without overcomplicating things. I also have strong knowledge of banking and government exams, which helps me create content that is both accurate and easy to understand. With experience and consistency, I aim to make preparation smoother for every learner.