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URGENT. Please solve these questions by providing detail explaination. thankyou A pension fund purchased an office block three months ago. A company has agreed to
URGENT. Please solve these questions by providing detail explaination. thankyou
A pension fund purchased an office block three months ago. A company has agreed to occupy the office block nine months from now. The lease agreement states that the company will rent the office block for 20 years. It is further agreed that rents will be paid half- yearly in advance and will be increased every two years at the rate of 2% per annum compound. The initial rent has been set at $60,000 per annum with the first rental payment due immediately on the date of occupation. As at the date of purchase of the office block, which of the following is the total present value of the rental income to the pension fund using a force of interest of 6% per annum? O $707,962.87 O $717,584.37 $727,918.47 $737,811.17 $745,953.06 $754,910.54 $763,502.94 $773,078.44 $782,806.52 $793,958.88 $805,149.71 $816,661.56 A pension fund purchased an office block three months ago. A company has agreed to occupy the office block nine months from now. The lease agreement states that the company will rent the office block for 20 years. It is further agreed that rents will be paid half- yearly in advance and will be increased every two years at the rate of 2% per annum compound. The initial rent has been set at $60,000 per annum with the first rental payment due immediately on the date of occupation. As at the date of purchase of the office block, which of the following is the total present value of the rental income to the pension fund using a force of interest of 6% per annum? O $707,962.87 O $717,584.37 $727,918.47 $737,811.17 $745,953.06 $754,910.54 $763,502.94 $773,078.44 $782,806.52 $793,958.88 $805,149.71 $816,661.56Step by Step Solution
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