Real Estate Math

A property manager charges a management fee of 8% of collected rents. In January, the property collected $9,500 in rent. What is the management fee for January?

A$680
B$760✓ Correct
C$840
D$950

Explanation

Management fee = Collected rents × Fee rate = $9,500 × 0.08 = $760. To solve this, multiply the relevant values: $9,500 at 8%.. The correct answer is $760.. This is a common calculation on the Iowa real estate exam.

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