Problema Solution
A building costs $4000 to rent. When no one offers to rent the place, the owner decides to drop the price by 2 percent each month that it remains empty. How much will the rent be if someone chooses to rent the building after it has been empty for 5 months?
Answer provided by our tutors
the start cost is: $4,000
after 1 month the cost is: 4,000*0.98
after 2 months the cost is: 4,000*0.98^2
...
after 5 months the cost is: 4,000*0.98^5 = $3,615.68