Question
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.Solution
SI at 4% p.a on the first Rs 550 SI at 6% p.a for amount above 5500 RS 13250 - 550 = 7750 SI = 5500 x 4 x 2 / 100 + 7750 x 6 x 2 / 100 = 440 + 930 = 1370
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