Question

Joe wants to rent an apartment with an initial monthly rent of $1,400. He has been told that the landlord raises the rent 1.25% each year. Using an exponential function ( or a method of your own) to model this situation, calculate the rent that Joe will have to pay for the 4th year of living in the apartment.

Answer 1

Answer: his pay for the 4th year is $1453.16

Step-by-step explanation:

The landlord raises the rent 1.25% each year. It means that the rent is increasing in geometric progression.

The formula for determining the nth term of a geometric progression is expressed as

Tn = ar^(n - 1)

Where

a represents the first term of the sequence.

r represents the common ratio.

n represents the number of terms.

From the information given,

a = $1,400

r = 1 + 1.25/100 = 1.0125

n = 4 years

The 4th term(year), T4 is

T4 = 1400 × 1.0125^(4 - 1)

T4 = 1400 × 1.0125^3

T4 = $1453.16