When one rents an apartment, one is often required to give the landlord a security deposit that is returned if the apartment is undamaged when you leave. In some localities, the landlord is required to pay the tenant interest once a year compounded yearly. Assume that the landlord is required to pay the tenant interest of 5 % compounded annually.
(a) Suppose the landlord invests a security deposit of $ 550 at a rate of 4.4 % compounded continuously. What is his net gain or loss after one year, rounded to the nearest cent? Use a negative number to denote a loss.
1 answer
-$2.20
2 answers