Find the cost of monthly rent for a 2-bedroom apartment in 30 years, assuming an annual inflation rate of 3%, if the current rent is $350.
A) $\$ 859.89$
B) $\$ 144.20$
C) $\$ 849.54$
D) $\$ 857.97$
E) $\$ 360.65$

Question

Quizplus · Accepted Answer

To solve the problem, we use the formula:

FV = PV x (1 + i)^n

Where:
FV = Future Value (what we want to find)
PV = Present Value (current rent)
i = Inflation rate (3%)
n = Number of years (30)

Substitute the values given:

FV = 350 x (1 + 0.03)^30
FV = 350 x 1.03^30
FV = 350 x 2.427
FV = 849.54

Therefore, the cost of monthly rent for a 2-bedroom apartment in 30 years, assuming an annual inflation rate of 3%, if the current rent is $350 is $849.54, which is answer choice C.

Find the Cost of Monthly Rent for a 2-Bedroom Apartment $859.89\$ 859.89$859.89

Find the Cost of Monthly Rent for a 2-Bedroom Apartment $\$ 859.89$