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What would you charge the landlord as minimum compensation

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Reference no: EM132947853

Question - You signed a rental agreement with a landlord to rent his house for 10 years for which you pay 50,000 per year at the beginning of the lease year. Suppose, just before the fourth year's lease payment is due, your landlord wants to rent the house to a software company. In the time you have lived in the house, the rental prices have increased to 60,000 for similar houses like the one you rented. At a 8% discounting rate, what would you charge the landlord as minimum compensation to buy the lease back from you?

Reference no: EM132947853

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