Real Estate Math
A Massachusetts landlord collects last month's rent of $2,200 from a new tenant. The landlord must pay interest on this amount at what Massachusetts statutory rate?
A3% per year
B5% per year✓ Correct
CEqual to a passbook savings rate
DNo interest is required
Explanation
Massachusetts law requires landlords who collect last month's rent to pay interest at 5% per year (or the passbook savings rate if lower). The interest must be paid annually or at the tenancy's end.
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