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ololo11
14 days 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 [9.1K]14 days ago
8 0
$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 [9K]14 days 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.
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