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SSC CGL 2018 PYQ — Question 91

SSC CGL Tier II Quant - 09/03/2018 • Quantitative Aptitude • Q91

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Find the rate of interest (in%) if simple interest earned on a certain sum for the 3 years is Rs 900 and compound interest earned in 2 years is Rs 636?

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Correct answer: A

Explanation

  The correct answer is option 1 i.e. 12%

Understanding

Application

Simple interest earned on a certain sum for the 3 years is Rs 900.

So,                                                  

Simple interest for 2 years = 900 × 2/3 = Rs. 600

And

Simple interest for 1 year = 600/2 = Rs. 300

Compound interest earned in 2 years is Rs 636

So,

Difference of CI and SI for 2 years = 636 – 600 = Rs. 36

The CI for 2nd year will have the extra component i.e. interest on SI of 1st year.

So,

36 = 300 × R/100

R = 12%