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Assume that the growth of the cap rate is dependent on the growth of interest rates. Use the below data to create a regression model.

Assume that the growth of the cap rate is dependent on the growth of interest rates. Use the below data to create a regression model. What would you expect the cap rate to be in year 7 if interest rates are 5.5%. Hint, you need to calculate the growth rates of both variables from year 1 to year 6.

A. 4.73%

B. 6.12%

C. 8.35%

D. 7.36%

E. 5.16%

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