An apartment has an annual rent of 24,000 NIS and a contract that has to be renewed every 2 years. Consider an interest rate of 7% per year and answer the following: a. If you want to rent the apartment for 6 years and pay now the total amount, how much should you pay? b. If the contract cost increases by 25% every 2-year renewal, how much will the new total amount change?

An apartment has an annual rent of 24,000 NIS and a contract that has to be renewed every 2 years. Consider an interest rate of 7% per year and answer the following: a. If you want to rent the apartment for 6 years and pay now the total amount, how much should you pay? b. If the contract cost increases by 25% every 2-year renewal, how much will the new total amount change?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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