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Maverick wants to rent some office space for 5 years. The lease states that the
annual rent is $75,000 for the first year and will increase by 7.25% each
additional year of the lease. What will the total rent be for the entire 5-year
lease? Round your answer to the nearest hundredth.

Respuesta :

altavistard

Answer:

$106,426.01

Step-by-step explanation:

Use the compound amount equation A = P(1 + r)^t and take as your answer the total amount after 5 years.  Here the principal is $75,000, the interest rate is 0.0725 and the number of years (t) is 5:

A = $75,000(1 + 0.0725)^5, or

A  =  $75,000(1.0725)^5, or

A  =  $106,426.01

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