Real Estate Math

A Kentucky landlord rents a property for $1,200 per month. The lease has a 3% annual rent increase. What is the monthly rent in the second year?

A$1,218
B$1,224
C$1,236✓ Correct
D$1,260

Explanation

Year 2 rent = $1,200 × 1.03 = $1,236 per month.

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