Real Estate Math
A property manager charges 8% of collected rents to manage a 20-unit building. If average monthly rent is $1,100, what is the annual management fee?
AA. $17,600
BB. $21,120✓ Correct
CC. $13,200
DD. $26,400
Explanation
Annual collected rent = $1,100 × 20 units × 12 months = $264,000. Management fee = 8% × $264,000 = $21,120.
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