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In: Finance

A property owner charges a rent of $30 in the first year, $34 in the second...

A property owner charges a rent of $30 in the first year, $34 in the second year, and $36 in the third year, but provides two months of free rent in the first year as a concession. Using an 8 percent discount rate, what is the effective rent over the three years?

a) $32.18 b) $33.27 c) $33.89 d) $34.91

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Expert Solution

Correct answer is option b.

There is a little rounding off difference in my solution which is obvious and can be ignored.

jeff jeffy answered 2 years ago
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