Problema Solution
Rental costs for office space have been going up at 7.1% per year compounded annually fo the past 7 years. If office space rent is now $20 per square foot per month, what were the rental rates 7 years ago?
(round to two decimal palces as needed)
Answer provided by our tutors
here, n=7, rate r=7.1%=0.071
and Amount=20
20=p(1+0.071)^7
=> p= 12.37
present cost is $12.37 per square foot