Real Estate Math
A Colorado property management company charges 8% of EGI. Monthly gross rents are $15,000 with 7% vacancy. What is the monthly management fee?
A$1,016
B$1,116✓ Correct
C$1,200
D$1,320
Explanation
Monthly EGI = $15,000 × (1 − 7%) = $15,000 × 0.93 = $13,950. Monthly management fee = $13,950 × 8% = $1,116.
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