SSC Selection Post 2022 PYQ — Question 60

The correct answer is Option 2 i.e. 40.

Time = $1\frac{1}{4} = \frac{5}{4} \text{ years} = 15$ months

Next 0.25 year = 3 months = 1/4 year
Rate = 12% × 1/4 = 3%

Amount₁ = $10000 \times \left(1 + \frac{12}{100}\right) \times \left(1 + \frac{3}{100}\right) = 10000 \times \frac{112}{100} \times \frac{103}{100} = 10000 \times 1.12 \times 1.03 = 11536$

CI₁ = 11536 - 10000 = ₹1536

Compounded every 5 months

Time = 15 months 

Number of periods = 15 ÷ 5 = 3

Rate per period = 12% × (5/12) = 5%

Amount₂  = $10000 \times \left(1 + \frac{5}{100}\right)^3 = 10000 \times \left(\frac{21}{20}\right)^3 = 10000 \times \frac{9261}{8000} = 11576.25$

CI₂ = 11576.25 - 10000 = ₹1576.25

Difference = 1576.25 - 1536 = ₹40.25 ≈ ₹40