Real Estate Math

A Charleston property manager charges 7.5% management fee. Annual rents collected are $156,000. What is the annual management fee?

A$10,400
B$11,400
C$11,700✓ Correct
D$12,480

Explanation

Annual management fee = $156,000 × 7.5% = $156,000 × 0.075 = $11,700. To solve this, multiply the relevant values: $156,000 at 7.5%.. The correct answer is $11,700.. This is a common calculation on the South Carolina real estate exam.

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