Question

Betty grosses $15,600 per year in rental for an income property. The monthly mortgage payments are $827, yearly property taxes are $2,200 and the annual insurance premium is $900. If betty pays the property manager 10 percent of the gross, how much does the property manager earn in one year? Select one:

a. $867
b. $1,300
c. $1,560
d. $2,580

Answer 1

The property manager earns $1,560 in one year.

Step-by-step explanation:

To calculate how much the property manager earns in one year, we need to find 10% of the gross rental income. Betty earns $15,600 per year in rental income, so we can calculate the property manager's earnings by multiplying $15,600 by 10% (or 0.10).

Property manager's earnings = $15,600 x 0.10 = $1,560

Therefore, the property manager earns $1,560 in one year.