I had 189,349.16 in my bank and my bank gives profit every month. I got 356.68 Rs profit this month. How do I calculate percentage of interest on this money?
First, calculate your monthly interest rate. You do this by finding the percentage of your total amount the interest was:
- 356.68 / 189,349.16 = 0.188%
Over the course of the year, you will receive 0.188% every month (assuming the same interest rate the entire year). You can calculate how this is for the entire year by doing:
- (1 + 0.00188) ^ 12 = 1.022
This means your interest rate is about 2.2% over the entire year.