Real Estate Math

A Utah property manager collects $120,000 in annual rents and charges a 9% management fee plus a leasing fee of one month's rent per new lease (3 new leases per year, $1,000/month average). What are total annual fees?

A$13,800✓ Correct
B$10,800
C$14,400
D$12,000

Explanation

Management fee = $120,000 × 0.09 = $10,800. Leasing fees = 3 × $1,000 = $3,000. Total = $10,800 + $3,000 = $13,800.

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