Real Estate Math

A NJ property manager charges 8% of monthly rent for management. The property has 4 units each renting for $1,800/month. What is the annual management fee?

A$576
B$6,912✓ Correct
C$144
D$1,728

Explanation

Monthly rent = 4 × $1,800 = $7,200. Monthly fee = $7,200 × 8% = $576. Annual fee = $576 × 12 = $6,912.

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