Real Estate Math
A Tennessee commercial lease has a base rent of $2,500/month plus 3% of annual gross sales over $500,000. If annual gross sales are $800,000, what is the total annual rent?
A$39,000✓ Correct
B$30,000
C$33,150
D$21,000
Explanation
Base rent = $2,500 × 12 = $30,000. Overage = ($800,000 − $500,000) × 3% = $300,000 × 3% = $9,000.
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