Question:medium

Bank A offers 6% interest rate per annum compounded half yearly. Bank B and Bank C offer simple interest but the annual interest rate offered by Bank C is twice that of Bank B. Raju invests a certain amount in Bank B for a certain period and Rupa invests ₹ 10,000 in Bank C for twice that period. The interest that would accrue to Raju during that period is equal to the interest that would have accrued had he invested the same amount in Bank A for one year. The interest accrued, in INR, to Rupa is

Updated On: Jun 30, 2026
  • 2436
  • 3436
  • 2346
  • 1436
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The Correct Option is A

Solution and Explanation

Provided Information:
Bank A offers a 6% annual interest rate, compounded semi-annually (3% per half-year). Bank C's annual interest rate is \( w \) times that of Bank B.
Raju invests \( P \) in Bank B for \( t \) years. Rupa invests ₹10,000 in Bank C for \( 2t \) years.
Raju's interest from Bank B over \( t \) years equals Bank A's interest over 1 year.

1) Bank A Interest Calculation:
For semi-annual compounding, the amount after 1 year is:
\[ A = P\left(1 + \frac{r}{2}\right)^2 \] where \( r \) is the annual interest rate in decimal form.
Amount after 1 year = \( P \times \left(1 + 0.03\right)^2 = P \times \left(1.03\right)^2 = 1.0609P \)
Bank A's interest for 1 year: \( 1.0609P - P = 0.0609P \)

2) Raju's Interest from Bank B:
Raju's interest from Bank B for \( t \) years is given as 0.0609P. Let Bank B's interest rate be \( R \). The interest is calculated as:
\[ \text{Interest} = P \times R \times t = 0.0609P \]
This simplifies to the equation: \( R \times t = 0.0609 \)

3) Rupa's Interest from Bank C:
Bank C's interest rate is \( wR \). Rupa's interest from Bank C is:
\[ \text{Interest} = 10000 \times wR \times 2t = 20000 \times wR \times t \]
Substituting \( wR \times t = 0.0609 \) from step 2:
\[ \text{Interest} = 20000 \times 0.0609 = ₹1218 \]

Considering Rupa's investment period of \( 2t \) years, the total interest earned is:
\[ 2 \times ₹1218 = ₹2436 \]

Result: The final answer is ₹2436.

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