Real Estate Math

A Grand Forks property manager collects $48,000 in annual rents and charges a 7% management fee. What is the annual management fee?

A$2,880

B$3,360✓ Correct

C$3,600

D$4,000

Explanation

Annual management fee = $48,000 × 7% = $48,000 × 0.07 = $3,360. To solve this, multiply the relevant values: $48,000 at 7%.. The correct answer is $3,360.. This is a common calculation on the North Dakota real estate exam.

Related North Dakota Real Estate Math Questions

A Grand Forks commercial building has an annual NOI of $95,000. An investor requires a 9.5% return. What should the investor pay?
A North Dakota seller has a $280,000 outstanding mortgage on a home that appraised for $350,000. If the seller accepts an offer of $345,000, what is the approximate equity gained after paying a 6% commission?
A North Dakota agricultural operation has net farm income of $85,000/year. A buyer expects a 6.5% capitalization rate. What would the income approach yield for the farm value?
A North Dakota duplex has potential annual income of $24,000. With a 5% vacancy rate and $8,000 in expenses, what is the NOI?
A North Dakota seller's proceeds after selling for $428,000 must cover: a 5.5% commission, a $3,500 title fee, and a $210,000 mortgage payoff. What are the net proceeds?
A North Dakota buyer wants a monthly principal and interest payment no greater than $1,500. At 6% annual interest on a 30-year loan, approximately how large a loan can they afford? (Use factor of $5.99 per $1,000 borrowed.)
A North Dakota broker's monthly trust account statement shows a beginning balance of $15,000, deposits of $25,000, and disbursements of $18,000. What is the ending balance?
A North Dakota homeowner's insurance premium is $1,440 per year. At closing, the seller has prepaid the entire annual premium, and the buyer assumes coverage from the closing date (July 1). How much does the buyer owe the seller for the prepaid premium (using a 360-day year)?

Practice More North Dakota Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free North Dakota Quiz →