Question

A 5 year lease for a office space states that the annual rent is 62,000 for the first year and will increase by 7% each additional year of the lease. what will the total rent expense (nearest cent) be for the entire 5 year lease?
PLSSS HELPPPPPP

Answer 1

First year- 62,000
Second year- 7% increased in rent= 66,340
Third year- 7% increased in rent (66,340)= 70,984
Fourth year- 7% increased in rent (70,984)= 75,953
Fifth year- 7% increased in rent (75,953)= 81,270.

Total 5 years lease- 356,547.