What is the total term rent for a two-year lease at $1000 a month with a 5% monthly payment escalation in the second year?

To determine the total term rent for a two-year lease priced at $1,000 a month with a 5% increase in the monthly payment during the second year, we can break it down as follows.

In the first year, the rent is straightforward. Since the monthly rent is $1,000, for 12 months, the total rent for the first year would be:

$1,000 x 12 = $12,000.

In the second year, the monthly rent increases by 5%. Therefore, we calculate the new monthly rent as follows:

$1,000 x 0.05 = $50 (the increase).

So, the new monthly rent for the second year becomes:

$1,000 + $50 = $1,050.

For the second year, we again multiply by 12 months to find the total rent for that year:

$1,050 x 12 = $12,600.

Now, to find the total rent over the two-year lease, we add the total from both years:

$12,000 (first year) + $12,600 (second year) = $24,600.

This calculation provides the total term rent for the entire two-year lease period, confirming that