Total Rent Amount when there is an annual growth rate for rent

Say the monthly rent is $1000 and terms of the rent state that there is an annual increase in rent for 5%. If I were to find the total rent paid in 5 years, how would I do that

I at first tried using FVIFGA, future value interest factor of growing annuity where I used an interest rate of 0% a growth rate of 5% and for 5 period that did not work out

Can anyone here help me out with this one please ?

Re: Total Rent Amount when there is an annual growth rate for rent

12000*(1.05^0 + 1.05^1 + 1.05^2 + 1.05^3 + 1.05^4) = 66307.575.....

Another way:

12 * [(1000*1.05^5 - 1000*1.05^0) / .05]

Re: Total Rent Amount when there is an annual growth rate for rent

Quote:

Originally Posted by

**Wilmer** 12000*(1.05^0 + 1.05^1 + 1.05^2 + 1.05^3 + 1.05^4) = 66307.575.....

Another way:

12 * [(1000*1.05^5 - 1000*1.05^0) / .05]

Hey Wilmer, How in the world do you come up with these formulae

Do you teach Business Math some place

Are you an accountant

Re: Total Rent Amount when there is an annual growth rate for rent

Quote:

Originally Posted by

**dexteronline** Hey Wilmer, How in the world do you come up with these formulae

Do you teach Business Math some place

Are you an accountant

I'm a retired financial analyst; hence worked quite a bit with financial formulae.

By the way, these are really fairly easy/simple...I ain't no guru!