SSC GD 2025 PYQ — Question 49

The correct answer is option 2 i.e. 400. 

Let the principal be P and rate be r

Simple interest for 2 years = P × r × 2 = 40

So, P × r = 20

Compound interest for 2 years = P[(1 + r)² − 1]

41 = P(2r + r²) 

41 = 2P r + P r²

We know 2P r = 40, so P r² = 41 − 40 = 1

From P r = 20, we get r = 20 ÷ P

Now, P r² = 400 ÷ P = 1

P = 400