You are the chief financial advisor to a corporation that owns an office complex consisting of 50 units. At $400 per month, every unit can be rented. However, for each $20 per month increase, there will be two vacancies with no possibility of filling them. The corporation wants to receive a total of $20240 per month from rents in the complex. You are asked to determine the rent that should be charge for each unit. What is your reply?

Question

You are the chief financial advisor to a corporation that owns an office complex consisting of 50 units.  At $400 per month, every unit can be rented.  However, for each $20 per month increase, there will be two vacancies with no possibility of filling them.  The corporation  wants to receive a total of $20240 per month from rents in the complex.  You are asked to determine the rent that should be charge for each unit.  What is your reply?

anonymous · Answer

Let x be the number of $20 increase above 400, then (400 + 20 x) (50 - 2 x) = 20240 Solve for x, you find 2 solutions take the biggest one.