ABC Ltd. is a multinational that wants to invest in the real estate business in Barcelona. Two alternatives are offered by the owner of a property in one of the most popular areas of the city.

Option A: Renting the property with a perpetual contract, meaning for ever and ever. In this case, the company has to pay 5,000 per month and the contract contains a clause stating that the rent price will be growing at a 0.08% monthly.

Option B: Acquiring the property with a mortgage scheme for 45 years. The current ownership is demanding an initial payment of 2,100,000 and a monthly amount of 2,700 . The interest applicable rates are around 3% compounded yearly, this is supposed to be the market rate for this type of activities.

1)What is the total amount that the company should pay in Option A (Assuming a FV in n= 45 years)?