Real Estate Math

A 5,000 sq ft commercial space rents for $2.50 per square foot per month. The landlord charges a 6% property management fee on gross rents. What is the monthly management fee?

A$150
B$750✓ Correct
C$900
D$1,500

Explanation

Monthly gross rent = 5,000 sq ft × $2.50/sq ft = $12,500. Management fee = $12,500 × 6% = $750.

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