Interest on one year of rent? Bad at Math?

Question

Deposit of 500. Tenancy started in October (October -December 2007, had a interest rate of 2.6 % per year). From January to October 1st 2008, the interest rate per year was 1.4 %. Interest is given on a yearly basis and not on a monthly basis. Help please :)

Answer 1

FYI -  the  %  is  on  the  deposit  NOT  the  rent   -

9  month  ( jan  to  sept )  @  .014  rate  on  $500  =   $5.25

3  month  ( oct  to  dec )  @  .026  rate  on   $500  =    3.25

Making  the  total  $ 8 . 50  .

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