Question

You rent an apartment that costs $1,400 per month during the first year, but the rent is set to go up 10.5% per year. What would be the rent of the apartment during the 6th year of living in the apartment?

Answer 1

We will determine the rent cost after 6 years as follows:

`S=1400(1+0.105)^6\Rightarrow S=2548.600147`
`\Rightarrow S\approx2548.6`

So, the rent cost after 6 years would be approximately $2548.6.