Rental cost for offices spaces have been going up at 6.2% per year compounded annually for

the past 5 years. If office space rent is now $32 per square foot per month, what were the
rental rates 5 years ago

3 answers

Use the compound interest formula:
Future = Present*(1+r)^n
so
32=Present(1.062)^5
Solve for Present.
171.12
23.68