Respuesta :
Answer:
$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.
