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# How do you calculate fixed deposit interest?

Updated: 11/10/2022

Wiki User

15y ago

Fixed deposit interest is calculated using the simple interest concept

Interest = (principal * no. of years * rate of interest) / 100

principal = the amount you deposited

rate of interest = the amount in %

Ex: Deposit amount - 10,000

Rate of interest = 10%

no of days = 365

Interest = (10000 * 365 * 10) / (365*100) = 1000

Wiki User

15y ago

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Q: How do you calculate fixed deposit interest?
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### How do you calculate fixed interest?

Fixed deposit interest is calculated using the simple interest concept Interest = (principal * no. of years * rate of interest) / 100 principal = the amount you deposited rate of interest = the amount in % Ex: Deposit amount - 10,000 Rate of interest = 10% no of days = 365 Interest = (10000 * 365 * 10) / (365*100) = 1000

### What is a fixed interest?

Fixed interest means that the interest on a loan or deposit does not change as the result of market fluctuations.

### What is the benefit of fixed deposit interest rates?

Fixed deposit interest rates is a guaranteed interest rate for the entire term of an investment. They allow for the customer to earn high interest rates.

an income

### Is the interest on a fixed deposit are revenue?

Yes of course, the interest on a fixed deposit is revenue because revenue is something owed but not yet paid. Hence, we can call it as revenue. Many Banks such as Axis, ICICI, IDBI and NBFCs like Bajaj Finserv are offering good interest on fixed deposit which can be called as revenue.

### How do you calculate interest of 6 months fixed deposit with the principal of 10000 and the interest rate is 8 percent?

The formula to calculate interest is as follows: Interest = Principal * No. of years * Rate of Interest / 100 So Interest = 10000 * 0.5 * 8 / 100 = 400/- The interest you will receive interest at the end of the 6 month period is Rs. 400/-

### Is interest on fixed deposit an expense or income?

To the depositor, it is an income but to the bank or institution providing the fixed deposit as a product, it is an expense.

### What is a corporate fixed deposit?

A deposit made by investors with corporations for a fixed time period, for a predetermined/agreed upon rate of interest is called a "Corporate Fixed Deposits"

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