Write which progression is used to find the rate of interest in banks on deposits quarterly.
Answers
For many, calculating anything might be boring or complicated; but knowing how FD interest is calculated can help you gain more from your investment.
If you think it’s complicated, we’re here to simplify it for you!
A fixed deposit is a safe and easy investment that requires a one-time deposit only. You can deposit a sum of money called principal with the bank for a fixed time period (tenure). The deposit will earn interest during this period. At the end of it, you will get your deposit back along with interest. Savings pe bhi earnings!
Anyone with a bank account can open an FD with as low as Rs.1,000. The minimum time period is 7 days.
There are two methods used to calculate interest on a fixed deposit: Simple Interest and Compound Interest. Banks may use both depending on the tenure and the amount of the deposit.
What is the difference between the two? With simple interest, interest is earned only on the principal amount. With compound interest, the interest is earned on the principal as well as the interest.
Answer:
compound interest formula is used to find the rate of interest in banks on deposit quarterly.