Real Estate Math

A Florida commercial lease is a 5-year term at $2,800/month with annual 3% escalations. What is the total rent paid over the 5-year lease term? (Round to nearest dollar)

A$168,000
B$37,817✓ Correct
C$179,132
D$175,000

Explanation

Year 1: $2,800 × 12 = $33,600. Year 2: $33,600 × 1.

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