how interest rate on saving account is calculated
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Answer:
The formula for the same is as follows,
Interest on savings account= Daily balance*Rate of interest* (No. of days/365)
Interest= Principal*Rate of interest.
Interest: 100,000*8%= 8000.
Total Maturity value: 100,000+8000= Rs. 1,08,000.
Interest (6 months): 100,000*5.5%= 5500.
Pre-Maturity Value (6 months): Rs. 1,05,500.
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