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?

$30,775

Step-by-step explanation:

The statement indicates that the rent in a four-year lease is $29,000 per year and that there is a rent increase of 2% per year. $29,000 is the first year's rent and it will increase for the second, third and four year which means 3 increases in the price. So according to this, to calculate the annual the rent at the end of four years:

F= P(1*i)^n

F= future value

P= present value

i= interest

n= number of years

F= 29,000(1,02)^3

F= 30,775

The annual rent at the end of four years will be $30,775.

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