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After screening potential tenants for a new office space in downtown State College, I find a great tenant with good rental history and I feel

  1. After screening potential tenants for a new office space in downtown State College, I find a great tenant with good rental history and I feel good about them taking care of the space. They are the perfect tenant. We agree to a lease rate of $1500 a month for 12 months. What is the value of this stream of rental income to me today at an annual rate of 4.5% if I collect the first rental payment today and then on the 1st of the month thereafter?

B) What is the value to me today if I collect the rent at the end of the month instead?

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