Real Estate Math

A West Virginia tenant signs a 2-year commercial lease for $1,800/month with a 3% annual rent increase at the end of year 1. What will the monthly rent be in year 2?

A$1,854✓ Correct
B$1,866
C$1,872
D$1,890

Explanation

Year 2 rent = $1,800 × 1.03 = $1,854. To solve this, multiply the relevant values: $1,800 at 3%.. The correct answer is $1,854.. This is a common calculation on the West Virginia real estate exam.

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