Real Estate Math
A property manager charges 8% of gross collected rents. Monthly rents collected are $12,500. What is the monthly management fee?
A$875
B$1,000✓ Correct
C$750
D$1,250
Explanation
Management fee = $12,500 × 8% = $1,000 per month. To solve this, multiply the relevant values: $12,500 at 8%.. The correct answer is $1,000.. This is a common calculation on the Indiana real estate exam.
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