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Thumbs up Answer: how do I calculate rent over time with interest increase included

To calculate rent over time with interest increase included, follow these steps:
  1. Determine the initial rent amount and the percentage rate increase per year. Let's say your initial rent is $1000 per month and the rate increase is 3% per year.
  2. Decide on the number of years you want to calculate the rent for. Let's say you want to calculate for 5 years.
  3. Create a table in Excel with the following columns: Year, Rent, Interest Rate, and Total Rent.
  4. In the Year column, enter the years you want to calculate for (1-5).
  5. In the Rent column, enter the initial rent amount ($1000).
  6. In the Interest Rate column, enter the percentage rate increase (3%).
  7. In the Total Rent column, enter the following formula in the cell for year 1:
    Formula:
    =Rent*(1+Interest Rate/100)^Year 
    . This formula calculates the total rent for year 1 by taking the initial rent amount and multiplying it by the compound interest formula, which takes into account the interest rate and the number of years.
  8. Copy the formula in the Total Rent column for years 2-5. To do this, click on the cell with the formula for year 1, then click and drag the bottom right corner of the cell down to the cell for year 5. This will copy the formula and adjust it for each year.
  9. The Total Rent column will now show the calculated rent amount for each year, taking into account the interest rate increase. For example, the total rent for year 2 would be $1030.90, and for year 5 it would be $1159.27.

By using this formula, you can easily calculate what your rent would be in future years when a percentage rate increase is added each year.
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