Real Estate Math

An Iowa lease for 2,200 sq ft at $22/sq ft/year with 3% annual increases. What is the rent in year 2?

A$49,808✓ Correct
B$48,400
C$50,204
D$49,300

Explanation

Year 1 rent = 2,200 x $22 = $48,400. Year 2 rent = $48,400 x 1.

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