Real Estate Math
A Minnesota broker charges a monthly management fee of 8% of collected rent. The property collects $4,200/month. What is the annual management fee?
A$3,024
B$4,032✓ Correct
C$4,200
D$5,040
Explanation
Monthly management fee = $4,200 x 8% = $336. Annual management fee = $336 x 12 = $4,032. Property management fees in Minnesota typically range from 6-12% of collected rent for residential properties. Commercial properties may use different fee structures.
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