Question

A tenant’s monthly rent of $675 will be increased by 3% every year. To the nearest cent, what will be the tenant’s monthly rent in 3 years?

Answer 1

$735.75

Explanation:

The equation is:

A = P(1 + rt)

We know

P = $675

r = 3% = 0.03

t = 3 years

Let's solve

A = 675(1 + 0.03 x 3)

A = 675( 1.09)

A = $735.75