Interest calculation

[otlotleng]

I asked one of the biggest resedential lease company to invest my deposit in a interest bearing acc,I have stayed in their flat for 8 month and my interest is R174 on R5000 deposit.is that possible?please advice

 

[D3x!]

very possible, depends on the intertest rate they received, say 3% then:

R5000 x3% = R150

R150/12 x 8=R100

they must have been getting just over 5% interest

remember interest rate is per annum not p/m

and no i have not worked in re-investment of interest

 

[mjkelly]

I asked one of the biggest resedential lease company to invest my deposit in a interest bearing acc,I have stayed in their flat for 8 month and my interest is R174 on R5000 deposit.is that possible?please advice

You don't have to ask, they are required to. But the type of account they put it into rarely gets the 5.14% AER interest you earned. Which considering the interest rates of the big 4, it's actually really good. So just smile, and take it.

 

[encrypted]

You are also allowed to request a statement of interest which will explain it.