A tenant wants to lease a building for $48 000 per year. She signs a five-year rental agreement that states that she will pay $24 000 every six months for the next five years. Which of the following is the timeline for her rental payments, assuming she makes the first payment immediately?

Question

Quizplus · Accepted Answer

The tenant will pay $24 000 every six months for five years, which means a total of 10 payments. The first payment is immediate, so the timeline will be as follows:

Payment 1: Immediately
Payment 2: Six months after Payment 1
Payment 3: Twelve months after Payment 1
Payment 4: Eighteen months after Payment 1
Payment 5: Twenty-four months after Payment 1
Payment 6: Thirty months after Payment 1
Payment 7: Thirty-six months after Payment 1
Payment 8: Forty-two months after Payment 1
Payment 9: Forty-eight months after Payment 1
Payment 10: Fifty-four months after Payment 1

Thus, the correct timeline is shown in option B.

A Tenant Wants to Lease a Building for $48 000