Real Estate Math
A Vermont commercial lease has a 3% annual escalation clause on a base rent of $24,000/year. What will the annual rent be in year 2?
A$24,600
B$24,720✓ Correct
C$25,200
D$25,440
Explanation
Year 2 rent = $24,000 x (1 + 0.03) = $24,000 x 1.03 = $24,720. To solve this, multiply the relevant values: $24,000 at 3%.. The correct answer is $24,720.. This is a common calculation on the Vermont real estate exam.
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