Real Estate Math
A commercial lease specifies a base rent of $18 per square foot per year plus $4.50 per square foot for taxes and $2.25 per square foot for insurance. The tenant occupies 3,200 square feet. What is the monthly rent?
A$6,400
B$6,600✓ Correct
C$6,520
D$6,560
Explanation
Total annual rent per square foot = $18 + $4.50 + $2.25 = $24.75/sq ft. Annual rent = 3,200 × $24.75 = $79,200. Monthly rent = $79,200 ÷ 12 = $6,600.
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