Real Estate Math

A Hawaii tenant's rent is $2,800/month. The tenant is offered a 3-year lease with a 3% annual increase. What is the rent in month 25 (beginning of year 3)?

AA. $2,969.68
BB. $2,968.52✓ Correct
CC. $2,897.20
DD. $3,059.20

Explanation

Year 1: $2,800. Year 2: $2,800 × 1.

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