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

Options

A. 1280
B. 1370
C. 840
D. 1325

Answer

To solve the problem of calculating the interest earned by Sameera when she deposits Rs. 13,250 with the bank for 2 years, we can follow these steps:

### Step 1: Identify the principal amounts and interest rates
Sameera deposits a total of Rs. 13,250. The bank pays:
- 4% interest per annum on the first Rs. 5,500
- 6% interest per annum on the amount above Rs. 5,500

### Step 2: Calculate the amount above Rs. 5,500
To find the amount that earns 6% interest, we subtract Rs. 5,500 from Rs. 13,250:
\[ \text{Amount above } 5,500 = 13,250 - 5,500 = 7,750 \]

### Step 3: Calculate the simple interest for Rs. 5,500 at 4%
Using the formula for simple interest:
\[ \text{Simple Interest} = \frac{P \times R \times T}{100} \]
where:
- \( P = 5,500 \)
- \( R = 4\% \)
- \( T = 2 \) years

Calculating the interest:
\[ \text{SI}_{4\%} = \frac{5,500 \times 4 \times 2}{100} = \frac{44,000}{100} = 440 \]

### Step 4: Calculate the simple interest for Rs. 7,750 at 6%
Now, we calculate the interest for the amount above Rs. 5,500:
\[ P = 7,750, \quad R = 6\%, \quad T = 2 \text{ years} \]
Calculating the interest:
\[ \text{SI}_{6\%} = \frac{7,750 \times 6 \times 2}{100} = \frac{93,000}{100} = 930 \]

### Step 5: Calculate the total interest earned
Now, we add both interests to find the total interest earned by Sameera:
\[ \text{Total Interest} = \text{SI}_{4\%} + \text{SI}_{6\%} = 440 + 930 = 1,370 \]

### Final Answer
The total interest earned by Sameera after 2 years is Rs. 1,370.

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