Real Estate Math

A West Virginia property manager charges 8% of collected rent. A building collects $6,500 per month. What is the annual management fee?

A$520
B$6,240✓ Correct
C$7,800
D$5,200

Explanation

Monthly fee = $6,500 x 0.08 = $520. Annual fee = $520 x 12 = $6,240. To solve this, multiply the relevant values: $6,500 at 8%.. The correct answer is $6,240.. This is a common calculation on the West Virginia real estate exam.

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