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Rent Increase Practice

Answer the following short answer questions.

  1. You are renting an apartment for $1,100 per month. The expected rent increase for your area is 4% per year. What will your predicted rent be in 5 years?

    Use the following formula: Y = a (1 + r)t

    Answer: $1,339

  2. You are renting an apartment for $700 per month. The expected rent increase for your area is 3% per year. What will your predicted rent be in 15 years?

    Use the following formula: Y = a (1 + r)t

    Answer: $1,091

  3. You are renting an apartment for $1,500 per month. The expected rent increase for your area is 2.5% per year. What will your predicted rent be in 4 years?

    Use the following formula: Y = a (1 + r)t

    Answer: $1,656

  4. You are renting an apartment for $450 per month. The expected rent increase for your area is 1% per year. What will your predicted rent be in 20 years?

    Use the following formula: Y = a (1 + r)t

    Answer: $550