Real Estate Math

A broker manages 5 properties with average monthly rents of $1,400 each. The management fee is 8%. What does the broker earn per month from management fees?

A$420
B$560✓ Correct
C$700
D$840

Explanation

Total monthly rents = 5 × $1,400 = $7,000. Management fee = 8% × $7,000 = $560.

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