Rent is paid each year. This years rent 2;10 000 has just been paid. How much

Question:

Rent is paid each year. This year’s rent 2;10 000 – has just been paid. How much rent will need to be paid in two years’ time if:

(a) the rent remains constant in real terms?

(b) the rent remains constant in money terms?
In both of the above cases, what is the PV of the Year 2 rent? Assume that the market discount rate is 15.5% and the general rate of inflation is 5% per year.AppendixLO1

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: