Consider a renter whose rent is indexed to the average observed growth in rent in the area. Initial rent is $2000. The average growth in rent is as follows:

Year: 1 2 3 4 5

Growth in Rent: 2% 2.40% 2.80% 3.10% 3.70%

Rent: $2,000

A. Calculate the year by year annual rent

B. If the cost of capital is 6.5%. Calculate the average annual effective rent. Show your work or calculations. (Answer both questions with respect to Excel)