You have the opportunity to lease space for your business. The property owner has proposed a four-year lease with a rent of $29,

Question

ololo11

2 months ago

13

You have the opportunity to lease space for your business. The property owner has proposed a four-year lease with a rent of $29,

000 per year. If a proposed rent increase is 2% per year what will the annual rent be at the end of four years?

Mathematics

2 answers:

Zina [12.3K] · Answer 1 · 2026-03-14T09:21:33+03:00

$30,775. Detailed explanation: The proposed rent for a four-year lease is $29,000 yearly, with an annual increase of 2%. This means the first year is $29,000, which will rise for each subsequent year due to three price increments. According to the formula: F= P(1*i)^n, where F is the future value, P is the present value, i is the interest, and n is the number of years. Thus, F= 29,000(1,02)^3, resulting in F= 30,775. Therefore, the annual rent at the end of four years will amount to $30,775.

Inessa [12.5K] · Answer 2 · 2026-03-14T09:24:14+03:00

Inessa [12.5K]2 months ago

6 0

$29,580. Breaking it down: 29000/4 equals 7250. So, 7250 plus 2% of 7250 calculates as follows: 7250 + (2/100) * 7250 gives us 7250 + 145, totaling $7395 with four payments resulting in $29,580.