BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Simple Interest
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Compound Interest
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Both Option Simple and Compond Interest
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Time
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Detailed explanation-1: -The formula used for calculation of simple interest is I = P x R x T where ‘I’ stands for Interest, ‘p’ stands for principal, ‘r’ stands for annual interest rate, and ‘t’ stands for tenure of the deposit.
Detailed explanation-2: -Yes, you can calculate returns from your RD investment by using the formula A = P x (1 + r/100)nt, where, A = Total amount by the end of the period. P = Principal amount from which compounding will start. r = Annual rate of interest.
Detailed explanation-3: -Simple Recurring Deposit is a Product under Recurring Deposit, where there is no maximum limit on the monthly installment. AMOUNT LIMIT. Minimum Installment for opening Recurring Deposit is – Nu. 100. Maximum Installment for opening Recurring Deposit is – No limit.
Detailed explanation-4: -You calculate simple interest using the formula Interest = P x R x N, where P is the beginning balance, R is the interest rate, and N is the number of periods. The interest is paid at the end of the period.