Real Estate Math

An Alaska commercial lease requires a base rent of $24,000 per year plus a percentage rent of 4% of gross sales over $300,000. If the tenant's gross sales are $600,000, what is the total annual rent?

A$24,000
B$36,000✓ Correct
C$48,000
D$12,000 base plus percent only

Explanation

Base rent = $24,000. Overage sales = $600,000 − $300,000 = $300,000. Percentage rent = $300,000 × 4% = $12,000. Total rent = $24,000 + $12,000 = $36,000.

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