Real Estate Math

A Virginia commercial tenant is in a 5-year lease at $3,500/month with 3% annual escalations. What is the monthly rent in year 3?

A$3,712.35✓ Correct
B$3,605.00
C$3,710.20
D$3,715.00

Explanation

Year 1: $3,500. Year 2: $3,500 × 1.

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