Question 1:A property was purchased some years ago when the rental market was very poor. Face Rent was set at $200 per week with no provision for adjustment through the lease. The lease currently has five years to run. Market rent for the property is currently $288 per week and is expected to escalate at 4% per annum. What is the lessee’s interest if a discount rate of 11% is applicable?:Note: write the lessee’s interest to the nearest whole dollar.:Assume 52 weeks in the year for computations and assume rents through the year are collected at the end of the year as fifty two time the weekly rent.Question 2:A retail lease specifies rent as the sum of a base rent of $1,000 per week plus 6% of turnover. Turnover is anticipated to be $5205 per week. The base rent is expected to grow at 3%pa and the turnover is expected to grow at 6%pa. The lessor’s discount rate is 13%. The lease will run for five years.: What is the lessor’s interest to the nearest dollar.?: Assume that rents are collected at the end of each year as the numerical sum of 52 weeks of rent.