SSC GD 2024 PYQ — Question 56

The correct answer is option 2 i.e. 10%.
When the compound interest of two consecutive years is given then the difference between the interest for two years is taken as D and the rate of interest R can be calculated as follows,

Rate = ${100 \times D} \over { P \times T}$

where P is the interest of first year and T is 1.

According to the given question,

Difference between the compound interest of two consecutive years = 880 - 800 = 80

⇒ Rate = ${100 \times 80} \over { 800 \times 1}$

⇒ 10%

Hence the rate of interest per annum is 10%.