Given :
You rent an apartment that costs $1700 per month during the first year, but the rent is set to go up 9% per year.
To Find :
The rent of the apartment during the 12th year of living in the apartment.
Solution :
Let, A is the final price after 12 year and P is the principal amount.
We know, by formula of compounding :
[tex]A = P( 1 + \dfrac{r}{100})^t\\\\A = 1700( 1 + \dfrac{9}{100} )^{12}\\\\A = \$4781.53[/tex]
Therefore, the rent of the apartment during the 12th year of living in the apartment is $4781.53 .
