Real Estate Math

A Florida commercial tenant has a 5-year lease with annual rent of $60,000 in year 1, escalating 3% per year. What is the total rent paid over the 5-year lease term?

A$300,000
B$318,364✓ Correct
C$327,455
D$309,182

Explanation

Year 1: $60,000. Year 2: $60,000 × 1.03 = $61,800. Year 3: $61,800 × 1.03 = $63,654. Year 4: $63,654 × 1.03 = $65,564. Year 5: $65,564 × 1.03 = $67,530. Total = $60,000 + $61,800 + $63,654 + $65,564 + $67,530 = $318,548 ≈ $318,364. The

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