Real Estate Math
A commercial tenant in Illinois signs a 5-year lease at $24 per square foot per year for 2,500 square feet, with a 3% annual escalation. What is the monthly rent in Year 1?
A$4,000
B$5,150✓ Correct
C$6,000
D$8,000
Explanation
Annual rent Year 1 = $24 × 2,500 sq ft = $60,000. Monthly rent Year 1 = $60,000 ÷ 12 = $5,000.
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