math

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Rental cost for offices spaces have been going up at 6.2% per year compounded annually for
the past 5 years. If office space rent is now $32 per square foot per month, what were the
rental rates 5 years ago

  • math -

    Use the compound interest formula:
    Future = Present*(1+r)^n
    so
    32=Present(1.062)^5
    Solve for Present.

  • math -

    171.12

  • math -

    23.68

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