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Studentka2010 [4]
3 years ago
9

An office building rents for $40,000 the first year, then increases by 0.5% each year. Use summation notation to represent the t

otal payments for the first three years. Explain your reasoning. Marcus’s response is given below: If rent increases by 0.5% each year, the year’s rent is 1.005 times the previous year’s rent. So, an exponential expression can be used. The summation is 1.005 raised to the year times $40,000, where the years go from 0 to 3.
Mathematics
2 answers:
Sholpan [36]3 years ago
4 0
Given the initial rent is $40000, and the rent is increased by 0.5% each year, the rent in the third year will be given by:
FV=P(1+r)^n
FV=40000(1.05)^n
Thus the answer  for the sum of payments for 3 years will be:
The summation is 1.05 raised to n years times  $40000, where the years is from 0 to 3.
erica [24]3 years ago
3 0

Answer:

The indices Marcus used are not correct.

As is, the indices create a summation with four terms, not three.

The upper index should be 2 instead of 3.

Step-by-step explanation:

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——————————

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