Question

A owner increases the rent of his house by 5% at the end of each year. If currently its rent is ₹2500 per month,how much will be the rent after 2 years

Answer 1

2500 current rent

1st year rent is 12x2500 = 30000

2 nd year rent 12x2500=3000.

✓✓increased 5% of his rent in 2nd year = 2500 X 5/100= 125 monthly added

••••total 125x12 = 1500
1st year increased (5%) 2500+125 = 2625
2nd year increased (5% ) 2625+125 = 2750
after 2 years monthly rent is 2750...