As the years go by

In this exercise, you will forecast the rental income for the next 10 years using a growth rate.

Financial models are often used to analyze an investment over time, and they use assumptions to make estimates of what revenue and expenses could look like in the future.

Growth rates are used to describe the increase of revenue and expenses over time. We can use this calculation to find the future value of something with a growth rate: [Previous Value] * (1 + [Rate])

If you have lost progress, close any open workbooks and load 1_2_capitalization_rate.xlsx from the Exercises folder.