Sometimes referred to as step-ups or escalations

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Reference no: EM131359791

1. In commercial leases, rents do not necessarily have to be kept constant over the life of the lease term. One option is for there to be pre-specified increases in the contract rental rate over time, sometimes referred to as “step-ups” or “escalations.” This type of rent treatment is commonly referred to as:

Flat rent

Indexed rent

Graduated rent

Percentage rent

2. You need some money today and the only friend you have that has any is your ‘miserly' friend. He agrees to loan you the money you need, if you make payments of $20 a month for the next six months. In keeping with his reputation, he requires that the first payment be paid today. He also charges you 1.5% interest per month. How much money are you borrowing?

A. $113.94

B. $115.65

C. $119.34

D. $119.63

E. $119.96

Reference no: EM131359791

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