Real Estate Math
A Massachusetts property management firm charges 7% of gross rents collected. Monthly gross rents for a building are $28,000. What are the annual management fees?
A$23,520✓ Correct
B$19,600
C$2,352
D$235,200
Explanation
Monthly management fee = $28,000 × 7% = $1,960. Annual = $1,960 × 12 = $23,520. To solve this, multiply the relevant values: $28,000 at 7%.. The correct answer is $23,520.. This is a common calculation on the Massachusetts real estate exam.
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