Real Estate Math

An Ohio tenant's monthly rent is $1,400. The lease says rent increases 3% annually. What is the monthly rent in year 2?

A$1,440.00
B$1,442.00✓ Correct
C$1,442.50
D$1,450.00

Explanation

Year 2 monthly rent = $1,400 × 1.03 = $1,442.

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