How do I calculate interest earned on a security deposit? $5100 security deposit@ 0.04 for 4 years?

Asked by bethk301, New Jersey Mon Nov 4, 2013

Help the community by answering this question:

+ web reference
Web reference:

Answers

5
Rahzhak Mizh…, Other Pro, Bloomfield, NJ
Sun Dec 22, 2013
First year: 2.04
2nd : 4.08
3rd:6.02
4th: 8.16

ie:p/w=% or p/%=w or %xw=p...5100x.04%=2.04x4=8.16
0 votes
Kenneth Verb…, Agent, PRINCETON, NJ
Mon Nov 4, 2013
your landlord must give you an accounting. I believe the rate is far less than 4%. I DONT THINK SAVINGS ACCOUNTS HAVE EARNED THAT MUCH IN ABOUT 20 YEARS
0 votes
, ,
Mon Nov 4, 2013
Hard to do if the interest is compounding monthly. Tim's calculations look right.

I am not a realtor, but I believe you are entitled to know where the money is being kept and whether it is being integmingled with the landlord's other money.
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Mon Nov 4, 2013
What do you have that would be making 4% a year? Some escrow accounts make 0% a year like mine. I could leave it in there 20 years and it makes nothing.
0 votes
Sorry, that is 0.04%
Flag Mon Nov 4, 2013
Tim Moore, Agent, Kitty Hawk, NC
Mon Nov 4, 2013
That is 4% per year for 4 years. Easiest way might be off a little but not much.

$5100 + 4% = 5304
$5304 + 4% = 5516
$5516 +4% = 5737
and the fourth year
$5737 +4% = 5966
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more