You have a condominium for rent. Your tenant will pay you yearly rent of $10,000.00 (ten...

 

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You have a condominium for rent. Your tenant will pay you yearly rent of $10,000.00 (ten thousand) If a rental contract is longer than two calendar years, yearly rent is adjusted every two year by inflation rate. For example, if annual inflation rate is 2%, rent will become $10,404 after two years. Now suppose that current inflation rate is 2% and interest rate will become 3% after 2 years. Then if your enant rent your condominium for 5 years, and wish to make a one-time payment in cash, what is the fair amount? (calculate using simple interest and rent is paid at the end of each year) You have a condominium for rent. Your tenant will pay you yearly rent of $10,000.00 (ten thousand) If a rental contract is longer than two calendar years, yearly rent is adjusted every two year by inflation rate. For example, if annual inflation rate is 2%, rent will become $10,404 after two years. Now suppose that current inflation rate is 2% and interest rate will become 3% after 2 years. Then if your enant rent your condominium for 5 years, and wish to make a one-time payment in cash, what is the fair amount? (calculate using simple interest and rent is paid at the end of each year)

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