Exequiel wants to rent his apartment and in the lease he indicates to his tenant that the value would increase by 5% each year from the date of the contract. After two years, he receives $458,070 in rent. What was the rental value at the beginning of the contract?

Let's denote the initial rental value as "R". According to the lease agreement, the value would increase by 5% each year. So, after the first year, the rental value would be 1.05 * R, and after the second year, it would be (1.05 * R) * 1.05 = 1.05^2 * R. After two years, Exequiel received $458,070 in rent, which is equal to the rental value after two years: 1.05^2 * R = $458,070 Now, we can solve for the initial rental value "R": R = $458,070 / (1.05^2) Calculating this: R = $458,070 / 1.1025 R ≈ $415,000 So, the initial rental value at the beginning of the contract was approximately $415,000.