SSC CGL 2024 Tier-I · 11 September 2024, Shift 3 · Quantitative Aptitude · Question 18 of 100

Text as printed on a candidate's response sheet for this shift; answer per SSC's tentative key as marked on that sheet. Solution last reviewed 6 September 2026.

Where this paper and its answers come from

SSC does not publish CGL question papers or a public answer key. The questions and options here are reproduced as printed on a candidate's own response sheet for this shift — the Commission's text, unchanged. Each answer is SSC's tentative key as marked on that sheet; SSC allowed challenges to it and never publishes a final key. The solutions are written by UnlockIAS.

Sohan borrows a sum of ₹1,41,545 at the rate of 11% per annum simple interest. At the end of the first year, he repays ₹25,490 towards return of principal amount borrowed. If Sohan clears all pending dues at the end of the second year, including interest payment that accrued during the first year, how much does he pay (in ₹) at the end of the second year?

(a)1,37,407
(b)1,36,453
(c)1,44,391
(d)1,41,222

Answer

Why

Correct — C. The repayment at the end of year 1 goes to principal only, so interest keeps running on what is left.

Year-1 interest = 11% of ₹1,41,545 = ₹15,569.95
Principal repaid = ₹25,490
Principal carried into year 2 = 1,41,545 − 25,490 = ₹1,16,055

Year-2 interest = 11% of ₹1,16,055 = ₹12,766.05
Final payment = 1,16,055 + 12,766.05 + 15,569.95 = ₹1,44,391 → option (c)

Why the others are wrong

(a)
1,37,407 — ₹6,984 short. Dropping the first year's ₹15,569.95 leaves ₹1,28,821.05 and dropping the second year's ₹12,766.05 leaves ₹1,31,624.95 — neither route lands on ₹1,37,407.
(b)
1,36,453 — ₹1,36,453 stands ₹20,398 above the ₹1,16,055 still owed, which is neither the second year's ₹12,766.05 on its own nor the two years' ₹28,336 together.
(d)
1,41,222 — ₹1,41,222 sits just below the ₹1,41,545 borrowed, which is the pull. But ₹25,490 of principal is already repaid and ₹28,336 of interest has been added since.

Concept

Simple interest is charged on the outstanding principal and never compounds: each year's charge is worked out afresh on whatever principal stands for that year.

The ₹25,490 is described as going "towards return of principal amount borrowed", so it reduces the principal and touches none of the interest.

The first year's interest therefore stays unpaid and is settled at the end of year 2, alongside the second year's interest and the remaining principal.

Total interest = 11% of (1,41,545 + 1,16,055) = ₹28,336.

The figures do not round. 11% of ₹1,41,545 is ₹15,569.95 and 11% of ₹1,16,055 is ₹12,766.05, and the paise cancel only at the final addition, so carry them instead of rounding early.

Key facts

Simple interest for one year equals principal × rate, and the principal is whatever is outstanding for that year.
A repayment marked as going towards principal does not clear interest that has already accrued.
The two interest charges here add to ₹28,336, being 11% of ₹1,41,545 plus 11% of ₹1,16,055.

Study next

Simple interest when the principal changes part-way through the termThe gap between simple and compound interest over two yearsInstalment sums where each payment is split between interest and principal

Common traps

Treating the ₹25,490 as clearing the first year's interest first, which the stem does not say.
Charging the second year's interest on the original ₹1,41,545 instead of on ₹1,16,055.
Rounding ₹15,569.95 and ₹12,766.05 to whole rupees before adding, when their paise cancel exactly.

The same borrow-repay-settle template runs at 9 Sep 2024, 09:00, Quant Q.25 (₹4,22,092 at 20%), at 13 Sep 2024, 09:00, Quant Q.23 (₹6,23,305 at 10%) and at 25 Sep 2024, 12:30, Quant Q.12 (₹3,48,020 at 8%). Only the principal, the rate and the repayment change.

Related PYQs

No directly related past PYQ was found.