Real Estate Math

A Virginia property's monthly rent is $1,850. The property manager charges 8% of gross collected rent as a management fee. What is the annual management fee?

A$1,480
B$1,776✓ Correct
C$2,220
D$2,664

Explanation

Monthly fee = $1,850 × 8% = $148. Annual fee = $148 × 12 = $1,776. To solve this, multiply the relevant values: $1,850 at 8%.. The correct answer is $1,776.. This is a common calculation on the Virginia real estate exam.

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