Real Estate Math
A North Dakota commercial lease has a base rent of $10,000/month plus a 2% overage on annual gross sales above $1,000,000. If the tenant's annual gross sales are $1,500,000, what is the total annual rent?
A$120,000
B$130,000✓ Correct
C$140,000
D$150,000
Explanation
Base rent = $10,000 × 12 = $120,000. Overage sales = $1,500,000 − $1,000,000 = $500,000.
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