Consider a renter whose rent is indexed to the average observed growth in rent in the...

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Consider a renter whose rent is indexed to the average observed growth in rent in the area. Initial rent is $2000. The average growth in rent is as follows: year 1 Growth in rent 2% 2 2.40% 3 2.80% 4 3.10% 5 3.70% Rent $2,000 A. Calculate the year by year annual rent B. If the cost of capital is 7.5%. Calculate the average annual effective rent. Show your work or calculations. Consider a renter whose rent is indexed to the average observed growth in rent in the area. Initial rent is $2000. The average growth in rent is as follows: year 1 Growth in rent 2% 2 2.40% 3 2.80% 4 3.10% 5 3.70% Rent $2,000 A. Calculate the year by year annual rent B. If the cost of capital is 7.5%. Calculate the average annual effective rent. Show your work or calculations.