3. A building owner is evaluating the following alternatives for leasing space in an office building for the next five years: Gross lease. Rent will be $25/square foot each year with the lessor responsible for payment of all operating expense. Expenses are estimated to be $10 during the first year and increase by $0.50 per year thereafter. If discount rate is 10%, what is the effective rent? (compute your answer using 4 decimals and round your final answer to 2 decimals)