Real Estate Math
An Iowa property manager budgets reserves for capital repairs at $0.15 per square foot per month for a 20,000 sq ft building. What is the annual reserve contribution?
A$36,000✓ Correct
B$3,000
C$18,000
D$30,000
Explanation
Monthly reserve = 20,000 x $0.15 = $3,000. Annual reserve = $3,000 x 12 = $36,000. Using the values given ($0.15), apply the appropriate formula.. The correct answer is $36,000.. This is a common calculation on the Iowa real estate exam.
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