Real Estate Math
An Iowa property manager charges 8% of monthly gross rents collected as a management fee. Monthly rents collected are $12,500. What is the management fee?
A$1,000✓ Correct
B$1,500
C$12,500
D$800
Explanation
Management fee = $12,500 x 0.08 = $1,000. To solve this, multiply the relevant values: $12,500 at 8%.. The correct answer is $1,000.. This is a common calculation on the Iowa real estate exam.
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