A house is rented for $3600 per quarter, with each quarter’s rent payable in advance. If money is worth 8%, compounded quarterly, and the rent is deposited in an account, what is the future value of the rent for one year?
1 answer
The future value of the rent for one year would be $14,890.40. This is calculated by taking the rent of $3600 per quarter and multiplying it by (1 + 0.08/4)^4, which equals 14,890.40.