Need to understand Fix Deposit Interest Formula ?

Question

Hi, can somebody provide fix Deposit Interest Formula ?

Details as mention below

Fix Deposit : Amount Rs. 70,000.00

Tenor : 26 Days

Interest rate 4.50 %

Interest Recd Amount : 224/-

Would like to understand Fix Deposit Interest Formula, how indian bank calculate.

Answer 1

4.5% of 70000 is 3150 - that will be the interest for 1 year.

3150 divided by 365 days gives a daily interest of 8.63.

Multiply 8.63 by 26 days gives Rs 224.38, which was rounded off to Rs 224. This is the basic calculation of simple interest.