Question

Natalie just rented an apartment for 900$ a month she was told that the rent will increase 5.5% each year about how much will her rent be in 7 years ?

Answer 1

For year 2 - 7:
100% + 5.5%
= 105.5%
= 1.055
Year 1: $900
Year 2: 1.055 x $900 = $949.5
Year 3: 1.055 x $949.5 = $1001.72
Year 4: 1.055 x $1001.72 = $1056.81
Year 5: 1.055 x $1056.81 = $1114.93
Year 6: 1.055 x $1114.93 = $1240.95
Year 7: 1.055 x $1240.95 = $1309.20

Total rent for 7 years
= $(900 + 949.5 + 1001.72 + 1056.81 + 1114.93 + 1240.95 + 1309.20) x 12 months
= $90877.32