Real Estate Math

A Connecticut property management company manages 15 properties. The total monthly rents collected are $62,500. The management fee is 7% of collected rents. What is the monthly management fee?

A$3,750
B$4,375✓ Correct
C$4,000
D$5,000

Explanation

Monthly management fee = $62,500 × 7% = $4,375. To solve this, multiply the relevant values: $62,500 at 7%.. The correct answer is $4,375.. This is a common calculation on the Connecticut real estate exam.

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