Real Estate Math

An Iowa property manager charges 8% monthly management fee on collected rents. Rents are $15,000/month with a 5% vacancy rate. What is the monthly management fee?

A$1,140✓ Correct
B$1,200
C$750
D$1,050

Explanation

Collected rents = $15,000 x (1 - 0.05) = $15,000 x 0.

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