Question

many locations require that renters be paid interest on their secuity deposits. If ypu have a security deposit of $1,700, how much interest would you expect to earn per year at 5 percent?

Answer 1

Answer: $85

Step-by-step explanation: The formula for interest is I = PRT, where I equals interest, P equals principal, R equals rate and T equals time.

I = 1,700 x .05 x 1 = $85

You can expect to earn $85 interest for one year on the security deposit.