Real Estate Math

A Nebraska commercial lease has a base rent of $2,000/month plus 5% of monthly gross sales over $25,000. If the tenant's monthly sales are $40,000, what is the total monthly rent?

A$2,000
B$2,750✓ Correct
C$4,000
D$3,500

Explanation

Overage rent = ($40,000 − $25,000) × 5% = $15,000 × 5% = $750. Total rent = $2,000 + $750 = $2,750.

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