Multiple choice

A bank pays simple interest at 4% per annum on first Rs. 5500 and an interest of 6% for amounts above that. Find the interest earned by Sameera if she deposits Rs. 13,250 with the bank for 2 years.

  1. Rs.1280

  2. Rs. 1370

  3. Rs. 840

  4. Rs. 1325

  5. Rs. 1425
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Interest on first 5500 at 4% for 2 years: (5500 * 4 * 2) / 100 = 440. Remaining amount is 13250 - 5500 = 7750. Interest on 7750 at 6% for 2 years: (7750 * 6 * 2) / 100 = 930. Total interest = 440 + 930 = 1370.

AI explanation

The interest on the first Rs. 5500 at 4% for 2 years is 5500 times 4 times 2 divided by 100, which equals Rs. 440. The remaining amount is 13250 minus 5500 = 7750, and the interest on this at 6% for 2 years is 7750 times 6 times 2 divided by 100, which equals Rs. 930. The total interest earned is 440 + 930 = Rs. 1370.

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