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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

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What is Accounting entry of interest on fixed deposits?

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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.


What are the differences between a fixed deposit and a certificate of deposit?

A fixed deposit is a type of savings account offered by banks where you deposit a sum of money for a fixed period at a fixed interest rate. A certificate of deposit (CD) is similar but is typically offered by credit unions and has a higher interest rate but requires a minimum deposit and penalties for early withdrawal.


How do you make journal entries on provision on interest on fixed deposit?

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Is interest from fixed deposit an expense or income?

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What is the formula to calculate interest on PIGMY deposit?

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