You have decided to rent a room in your house. The current rent is $450.00/month. If the rent cap is 2.75%, how many years will it take until you can charge at least $525.00/month?
525=450(1+.0275)^t
take the log of both sides...
log 525= log 450+ t log(1.0275)
t= (log525-log450)/log(1.0275
I'm sorry but that's a little to hard for me to understand
I'm workplace level in math i don't know log
never mind i got my friend to help me , but thank you for your time .
To calculate the number of years it will take to reach a rent of $525.00/month, given a rent cap of 2.75%, we need to determine the annual increase in rent and divide the desired increase by that amount.
Step 1: Calculate the annual rent increase
The rent cap is 2.75%, so the annual increase in rent is calculated as follows:
Annual increase = Current rent * (rent cap / 100)
= $450.00 * (2.75 / 100)
= $450.00 * 0.0275
= $12.375
Step 2: Determine the number of years needed to reach the desired rent
To find out how many years it will take to reach $525.00/month, we divide the desired increase in rent by the annual increase:
Number of years = (Desired rent - Current rent) / Annual increase
= ($525.00 - $450.00) / $12.375
= $75.00 / $12.375
= 6.06 years (rounded to two decimal places)
Therefore, it will take approximately 6.06 years (or about 6 years) to reach a rent of at least $525.00/month.