Real Estate Math
A Kansas retail tenant's lease provides for 5% annual rent increases. Year 1 rent is $24,000. What is the Year 3 annual rent?
A$25,200
B$26,400
C$26,460✓ Correct
D$27,783
Explanation
Year 2 = $24,000 × 1.05 = $25,200. Year 3 = $25,200 × 1.05 = $26,460. To solve this, multiply the relevant values: $24,000 at 5%.. The correct answer is $26,460.. This is a common calculation on the Kansas real estate exam.
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