The annual rent of the year if the annual gross sales are $450,000 would be $22,500.
The annual gross value is: $450,000-$350,000 = $100,000.
There would be an annual minimum rent of $18,500 with a minimum increase of four percent.
Increase in four percent of $100,000 would be $4000.
Therefore, the annual rent would be $18,500 plus $4000 i.e. $22,500.
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