I'm trying to calculate the total rental income I might receive over 25 years. The rent is 5% of the property value, which is initially £300k. If the property itself increases in value by 3% per year, how much total rent will I have received after 25 years.
I'm trying to do this in 'Numbers' on a Mac, so if you can provide a function I can use for that, that'd be great. Thanks.
You have a geometric series with starting value $5\% \text { of } 300=15$ and ratio of terms $1.03$, so the sum is $15\frac {1-1.03^{25}}{1-1.03}$