A bank pays simple interest at 4% per annum on the 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.

Show answer & explanation

Answer: (B) 1370

Explanation

First Rs 5500 at 4% for 2 years: 440. The remaining 13250 − 5500 = 7750 at 6% for 2 years: 930. Total interest = Rs 1370.