BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$2794.10
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$2738.11
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$2774.98
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$2807.11
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Detailed explanation-1: -Principal Amount : Frequently Asked Questions (FAQs) Either you can use a principal amount calculator or the formula for calculating the principal amount; the formula is – P = I/rt, while for determining the interest rate, the expression is – I = P*r*t.
Detailed explanation-2: -You can use the same interest rate calculation concept with other time periods: For a daily interest rate, divide the annual rate by 360 (or 365, depending on your bank). For a quarterly rate, divide the annual rate by four.
Detailed explanation-3: -The principal amount is Rs 10, 000, the rate of interest is 10% and the number of years is six. You can calculate the simple interest as: A = 10, 000 (1+0.1*6) = Rs 16, 000. Interest = A – P = 16000 – 10000 = Rs 6, 000.
Detailed explanation-4: -The interest compounded quarterly for 9 months means t=912year. So, the compound interest on Rs 8000 at 20% per annum for 9 months compounded quarterly is 1261.