You rent an apartment that costs $1200 per month during the first year, but the rent is set to go up 11% per yearWhat would be the rent of the apartment during the 8th year of living in the apartment ? Round your answer to the nearest whole number
To calculate the rent of the apartment during the 8th year, we need to apply an 11% increase for each year leading up to the 8th year.
Starting with the initial rent of $1200 for the 1st year:
1st year: $1200 (no increase)
2nd year: $1200 + 11% = $1200 + $132 = $1332
3rd year: $1332 + 11% = $1332 + $146.52 = $1478.52
4th year: $1478.52 + 11% = $1478.52 + $162.63 = $1641.15
5th year: $1641.15 + 11% = $1641.15 + $180.53 = $1821.68
6th year: $1821.68 + 11% = $1821.68 + $200.39 = $2022.07
7th year: $2022.07 + 11% = $2022.07 + $222.43 = $2244.50
8th year: $2244.50 + 11% = $2244.50 + $246.90 = $2491.40
Therefore, the rent of the apartment during the 8th year would be approximately $2491.40 rounded to the nearest whole number, which is $2491.