Use the below data to create a regression model and assume that the growth of the cap rate is dependent on the growth of interest rates. What would you expect the cap rate to be in year 7 if interest rates are 1.5%. Hint, you need to calculate the growth rates of both variables from year 1 to year 6.

• A. 4.16%
• B. 4.36%
• C. 3.12%
• D. 4.73%
• E. 3.77%