Joe wants to rent an apartment with an initial monthly rent of $1,400. He has been told that the landlord raises the rent 1.25% each year. Using an exponential function (or a method of your own) to model this situation, calculate the rent that Joe will have to pay for the 4th year of living in the apartment.

Question

Rodrigo Richards

Mathematics

21 August, 18:21

Joe wants to rent an apartment with an initial monthly rent of $1,400. He has been told that the landlord raises the rent 1.25% each year. Using an exponential function (or a method of your own) to model this situation, calculate the rent that Joe will have to pay for the 4th year of living in the apartment.

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Answers (1)

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Lincoln Clayton · Answer 1

Answer: his pay for the 4th year is $1453.16

Step-by-step explanation:

The landlord raises the rent 1.25% each year. It means that the rent is increasing in geometric progression.

The formula for determining the nth term of a geometric progression is expressed as

Tn = ar^ (n - 1)

Where

a represents the first term of the sequence.

r represents the common ratio.

n represents the number of terms.

From the information given,

a = $1,400

r = 1 + 1.25/100 = 1.0125

n = 4 years

The 4th term (year), T4 is

T4 = 1400 * 1.0125^ (4 - 1)

T4 = 1400 * 1.0125^3

T4 = $1453.16