A building owner charges net rent of $20 in the first year, $21 in the second year, and $22 in the third year. Using a 10 percent discount rate, what is the effective rent over the three years

$20.94

Explanation:

first we must determine the present value of the the 3 rent amounts:

PV = $20/1.1 + $21/1.1² + $22/1.1³ = 52.07

then you need to calculate the payment considering the following values:

using a loan calculator payment = $20.9381 ≈ $20.94

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

1. avoid them

2. a talk with them

3. ask someone you trust

4. ignore

5. call police