Priya invests Rs. 40,000 in a fixed deposit that offers compound interest at an annual rate of 20%, but the interest is compounded half-yearly rather than once a year, for a total duration of 1 year. Separately, her brother Karan invests Rs. 40,000 in a different scheme offering the same annual rate of 20%, but compounded annually, also for 1 year, so that the two siblings can compare how the compounding frequency alone affects the final amount, even though both schemes advertise the same headline annual rate.

Their cousin Divya invests a larger sum of Rs. 90,000 in a third scheme offering compound interest at an annual rate of 40%, compounded half-yearly, for a total duration of 1 year, to see how a higher rate combined with half-yearly compounding compares to the other two siblings' results once all three schemes have matured.