Real Estate Math
A Kansas property manager receives 7% of gross annual rent for management. The building has 8 units each renting for $900/month. What is the annual management fee?
A$6,048✓ Correct
B$6,552
C$7,056
D$7,560
Explanation
Annual rent = 8 × $900 × 12 = $86,400. Management fee = $86,400 × 0.07 = $6,048. To solve this, multiply the relevant values: $900 at 7%.. The correct answer is $6,048.. This is a common calculation on the Kansas real estate exam.
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