Real Estate Math

A South Dakota property is rented for $1,200/month. The property management fee is 9% of collected rents. Annual property taxes are $2,400 and insurance is $1,200. What are the total annual expenses (including management)?

A$3,600
B$4,896✓ Correct
C$5,096
D$5,496

Explanation

Annual rent = $1,200 × 12 = $14,400. Management fee = $14,400 × 9% = $1,296. Total expenses = $2,400 + $1,200 + $1,296 = $4,896.

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