Real Estate Math

A Kansas commercial tenant's lease is $18 per sq ft per year on 3,500 sq ft. The landlord increases rent 5% at renewal. What is the new annual rent?

A$63,000
B$66,150✓ Correct
C$67,500
D$72,000

Explanation

Current annual rent = $18 × 3,500 = $63,000. New rent = $63,000 × 1.

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