Real Estate Math

A West Virginia commercial lease has a base rent of $2,500/month plus 5% of gross monthly sales above $30,000. In a month where sales are $45,000, what is the total rent?

A$2,500
B$3,250✓ Correct
C$3,750
D$5,000

Explanation

Percentage rent applies to sales above $30,000: $45,000 - $30,000 = $15,000. Percentage rent = $15,000 × 5% = $750. Total rent = $2,500 + $750 = $3,250.

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