Real Estate Math

A Massachusetts tenant has a security deposit of $3,000 that has been held for 3 years at 5% interest. What is the total interest owed to the tenant?

A$450✓ Correct
B$150
C$225
D$600

Explanation

Annual interest = $3,000 × 5% = $150. Total for 3 years = $150 × 3 = $450. To solve this, multiply the relevant values: $3,000 at 5%.. The correct answer is $450.. This is a common calculation on the Massachusetts real estate exam.

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