Answer :
Answer:
The rent of the apartment during the 11th year of living is $4170.
Step-by-step explanation:
The current rent of the apartment = $1700 per month
The rate of increase in rent = 8.5% per year
The rent of the apartment during the 11th year = ??
[tex]Pn = P (1 + R/100) ^ T[/tex]
where Pn is the rent after 11 years
P is the current rent of the apartment
R = 8.5
T = 11 years
Substituting the values in the above equation, we get
[tex]Pn = 1700 ( 1 + 8.5/100) ^ {11}[/tex]
Pn = 1700 (2.453)
Pn = $4170.38 = $4170.
