Question

Assume a tenant has a rent starting at $11psf for a lease term of five years....

Assume a tenant has a rent starting at $11psf for a lease term of five years. The rent increases by $1.50psf each year. What is the average rent over the term?

Group of answer choices $12.50 $14.00 $17.00 $15.50 $11.00

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Answer #1
Year 1 $                    11.00
Year 2 $                    12.50
Year 3 $                    14.00
Year 4 $                    15.50
Year 5 $                    17.00
Total $                    70.00

Average Rent = $70/5 = $14

Answer is b. $14

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