How do I figure out an interest rate?
How do I figure out an interest rate?
Simple Interest Formulas and Calculations:
- Calculate Total Amount Accrued (Principal + Interest), solve for A. A = P(1 + rt)
- Calculate Principal Amount, solve for P. P = A / (1 + rt)
- Calculate rate of interest in decimal, solve for r. r = (1/t)(A/P – 1)
- Calculate rate of interest in percent.
- Calculate time, solve for t.
How is Bank percentage calculated?
Simple Interest It is calculated by multiplying the principal, rate of interest and the time period. The formula for Simple Interest (SI) is “principal x rate of interest x time period divided by 100” or (P x Rx T/100).
What is the interest on 20 lakhs?
Formula of Calculation of EMI
| Loan amount | Interest Rate | EMI per month |
|---|---|---|
| 5 Lakh | 8.35% | Rs. 6,159 |
| 10 Lakh | 8.50% | Rs. 9,847 |
| 15 Lakh | 8.60% | Rs. 13,112 |
| 20 Lakh | 8.70% | Rs. 17,610 |
Can I double my money in 5 years?
Similarly, if you want to double your money in five years, your investments will need to grow at around 14.4% per year (72/5). PPF at an annual interest rate of 7.1% will take around 10 years to double your money assuming the interest rate remains at 7.1% (72/7.1 =10.14).
Which scheme is best in Post Office 2020?
CRIF HIGH MARK TERMS AND CONDITIONS
| Small Savings Scheme | Interest Rate | Tax Deduction on Investment? |
|---|---|---|
| Post Office Time Deposit (4 year) | 6.7% | Yes |
| Kisan Vikas Patra (KVP) | 6.9% | No |
| Public Provident Fund (PPF) | 7.1% | Yes |
| Sukanya Samriddhi Yojana | 7.6% | Yes |
What is NSC interest rate 2020?
Read more news on
| Instrument | Interest rate (%) from October 1, 2020 | Compounding frequency |
|---|---|---|
| 5-year National Savings Certificate | 6.8 | Annually |
| Public Provident Fund | 7.1 | Annually |
| Kisan Vikas Patra | 6.9 (will mature in 124 months) | Annually |
| Sukanya Samriddhi Yojana | 7.6 | Annually |
Is money safe in post office?
Backed by a sovereign guarantee, deposits in post office schemes are secure, and offer an alternative to banks. In the case of postal deposits, there is no concept of insurance as the money is fully secure.
Is NSC or KVP better?
The Indian Postal Service provides Kisan Vikas Patra and is approved by the Reserve Bank of India. Unlike KVP, NSC provides tax advantages. Both NSC and KVP are initiatives implemented by the Govt of India to help risk-averse investors to reap guaranteed returns to create wealth.
Is NSC tax free?
National Savings Certificate (NSC) NSC is a postal savings scheme offered by the Indian government wherein you can invest any amount. One of the reasons to choose this scheme is to opt for tax savings where an investment up to INR 1.5 lakh (in a financial year) qualifies for a tax deduction under section 80C.
Is KVP tax free?
How is interest on KVP taxed? Interest on KVP is taxable on accrual basis and will be taxed as Income from other sources.No tax is deducted at source. The investments doi not qualify under Section 80C.
Is KVP safe investment?
KVP is a government run scheme which is not as beneficial as PPF or NSC but still has tremendous advantages. Kisan Vikas Patra is a government savings scheme run by the Department of Posts. It is an ideal investment if you are looking for safety and assured returns.
What if Kisan Vikas Patra is lost?
In case the KVP certificate is lost destroyed or damaged by the account holder, then he/she can apply for a duplicate copy of it at the post-office from where the certificate was issued. The application should include information such as amount, certificate number, explanation of loss or destruction and date.
What is the lock-in period for KVP?
30 months
Can I buy KVP from SBI?
It is a fixed rate small savings scheme designed to double your investment after a predetermined period of time (124 months in the currently available issue). As per current rules, KVP certificates can be purchased from select public sector banks as well as from India Post Offices.