A prospective tenant has presented a lease proposal to the owner of an office building. The lease has a five-year term and a contract rental rate of $16.00 per square foot in the first year of the lease ($1.33 per month). The rental rate then steps up 3 percent at the end of each year over the remainder of the lease term. So, for example, the rental rate in year 2 (months 13 to 24) would be $16.48