1An amount placed in a monthly interest-earning investment earning 6% a year will double in value in ___ years.

a.Approx. 11

b.Almost 12

c.Approx. 139

d.It will never double in value since it only earns interest.

1If an investment effectively earns 12% annually:

1. A monthly investment would have to earn a higher nominal rate to give the same effective return.
2. A monthly investment would have to earn a lower nominal rate to give the same effective return.
3. A monthly investment would have to earn the same nominal rate to give the same effective return.
4. A relation cannot be determined between a monthly and annual investment returns.

1You have just bought a distribution center that has a 20-year triple net lease (NNN) with a Year 1 annual base rent of $100,000, no escalations, but with a step-up after 5 years to compensate for the anticipated inflation over the intervening years that economists are estimating to be at an average rate of 2% per annum.Given this forecast, what would be the rent at which you reset the lease for Year 6?

a.$110,000

b.$110,408

c.$110,508

d.Remain at $100,000 since the lease has a 20-year term