Question

John wants to rent some office space for 8 years. The lease states that the annual rent is $62,000 for the first year and will increase by 4% each additional year of the lease. What will the total rent be for the entire 8-year lease? Round your answer to the nearest hundredth.
Group of answer choices
$496,000.00
$84,851.28
$571,282.03
$515,840.00

Answer 1

Answer:

The correct answer is $515,840.00

Step-by-step explanation:

Answer 2

Answer:

The total rent for the entire 8-year lease to the nearest hundredth is $84,851.28.

Step-by-step explanation:

The increment is 4% each year.

What is increment?

Increment is the amount or degree by which something changes especially the amount of positive or negative change in the value of one or more of a set of variables.

What is lease?

A lease is a legal, binding contract outlining the terms under which one party agrees to rent property owned by another party.

What is hundredth?

In arithmetic, a hundredth is a single part of something that has been divided equally into a hundred parts.

We use the formula,

$A=P(1+\frac{R}{100})^{n}$

$=62000(1+\frac{4}{100}))^{8} \\=62000(\frac{104}{100})^{8}\\ =84851.28$

The total rent for the entire 8-year lease to the nearest hundredth is $84851.28.

To know more about lease, hundredth, increment here

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