Sally, a UTM student, rents a room at a rate of $1300 per month starting in September 1, 2023 and plans to live there for 4 consecutive years. The landlord increases the rent by 2.5% every twelve months.
Also on September 1, 2023, Sally receives her student loan disbursement of $20,000, and she plans to use this amount exclusively for rent payments.
(a) How much money in total will Sally pay for rent throughout the 4 consecutive years?
(b) If Sally receives $20,000 every September in student loans for all 4 years, how much money will she have left over for other expenses over the four years, after paying her rent?

Answer rating: 100% (QA)

a To calculate the total rent over 4 years with a 25 increase annually Firstyear rent 1300 per month ... View the full answer