Interest

hello miss vindiya

calculatation of interest on bank credit limit are not calculalated on the closing or opening balance of limit but its depend on the use of your limit as more and full strength of your limit used by you bank will charge you interest on the weighted average method.

in your example ..how much amount you have utilised during the period on the such basis bank will charge the interest amount not on the closing balance which you have given the 1000 in your case