Mathematics algebra

Question

Find the cost of a monthly rent for a two-bedroom apartment in 30years assuming an annual inflation rate of 10% if the current rent is $850

Answer 1

R_t = R₀ (1 + r) ^t where R_t = monthly rent after t years; R₀ = current monthly rent; t = no. years of increase; r = annual rent increase as a decimal.

R₃₀ = 850(1 + 0.10)³⁰ Don't forget to use correct order of operations to calculate. Don't be surprised if the answer is LARGE!