Survey of various types of bank accounts, rates of interest
Answers
Step-by-step explanation:
Banks pay interst at a certain rate to a savings bank account holder. To compute this interst,the principal is determined by a certain procedure involving the following steps.
Step 1: Calculate the minimum balance (in nearest multiple of 10) in a month between the 10th day and the last day of the month. (By "nearest multiple of 10" it is implied that Rs 754 and Rs755 will be treated as Rs750 while Rs878 and R876 will be treated as Rs880.
Step 2: Add all these minimum balance. This is the principal(P).
Step 3: Calculate the simple interst on P for 1 month. The interst provided is annual. Therefore, time(T)=1month=1/12. If the calculated interst amont is less than Re1,ignore it.Also. ignoere the decimal part of the calculeted interst amount.
Step 4: No,interst is paid for the month in which the amount is closed.