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What is meant by Local variable and Instance variable?

Local variables are defined in the method and scope of the variables that have existed inside the method itself.

An instance variable is defined inside the class and outside the method and scope of the variables exist throughout the class. 

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As per quality assurance services, Local and Instance variables are defined as follows:

Local variables are those variables whose scope is only inside the function itself. No other methods of the class will have access to that variable.

Instance variables are kind of variables which are declared inside the class but outside the method and scope of that variable exist throughout the class.

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