A commercial property has a rent of $2.25 per square foot. Historical information indicates that the rent will increase by 1.6% annually. Use the equation 0=2.86(1.016)^x−3.15 and a graphing calculator to find how long it will take the rent to increase to $3.15 per square foot. Round to the nearest whole number if necessary.
Set the growth term equal to the target: 2.86(1.016)^x = 3.15. Solving gives x = ln(3.15/2.86) ÷ ln(1.016) ≈ 6.1, which rounds to 6 years. The correct choice is 6 years.
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