Suppose you own an apartment and are considering renting it out

Suppose you own an apartment and are considering renting it out. You agree to charging an annual rent of $24,000. The tenant wants a 10- year lease starting in 2020 and ending in 2029 You expect CPI Inflation to be 3% per year between 2021 and 2025 (for 5 years) and 5% every year after that (for 4 years), as shown in the Table below. P Inflation CPI X/P Rent Year real Rent nominal NA 1 0.03 1.0300 0.03 0.03 0.03 2020 24,000.00 24,000.00 2021 24,720.00 24,000.00 2022 24,000.00 2023 24,000.00 2024 24,000.00 2025 24,000.00 2026 24,000.00 2027 24,000.00 2028 24,000.00 2029 24,000.00 0.03 0.05 0.05 0.05 0.05 Use the table above to fill up the CPI and annual rent (nominal) you will charge every year during the length of the lease to maintain the real value of the rent. Then answer the questions below. Round to the nearest dollar. Note: Let Xt be the rent in year t. Let Pt be the price level (eg. CPI) in yeart with a base level of 1, not 100. Then Xt/Pt is the real value of the rent.
The nominal rent in year 2022 will be $27,822 $31.234 $24,000 325,461 The nominal rent in year 2025 will be 325,461 $27,822 $24,000 $32,234 The nominal rent in year 2029 will be $32,234 $33,818 $24,000 $27,822
The real rent in year 2029 will be O $27,822 O $24,000 O$44,557 O $ $33,818