Real Estate Math
A commercial lease specifies base rent of $2,000/month plus a percentage rent of 5% of annual gross sales exceeding $400,000. If the tenant has annual gross sales of $600,000, what is the total annual rent?
A$24,000
B$34,000✓ Correct
C$30,000
D$44,000
Explanation
Base rent = $2,000 × 12 = $24,000. Overage sales = $600,000 – $400,000 = $200,000. Percentage rent = $200,000 × 5% = $10,000. Total rent = $24,000 + $10,000 = $34,000.
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