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How is Security Deposit Interest calculated?


Introduction

It is using simple interest based on the settings in Admin > Settings > Deposit Interest.

Example:

Resident moved out on 10/31/14.
Security Deposit amount was $2,400.00

They occupied the unit for 86 days in 2013.  
They occupied the unit for 304 days in 2014.

Interest rate for 2013 was .11
Interest rate for 2014 was .09.

We calculate this by figuring out what the percentage interest was for each day of the year then multiple that times the deposit and the number of days occupied.

So the calculation looks like:

2013 => ((0.0011/365) * 86) * 2400 =  .62
2014 => ((0.0009/365) *304)* 2400 = 1.80

Total Interest Calculated.....................2.42

 

 

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