Question

A real estate broker acting as a property manager leased a building for 10 years at an annual rent of 48,000. They will receive a commission of 7.5% for the first five years, 5% for the next three years, and 3.5% for the final two years. What will the broker's gross income be from this commission over the life of the lease

Answer 1

Question... is the commission given 10 times or 3?

If the commission is 10 then

5*(48,000 * .075) + 3*(48,000 * .05) +2*(48,000 * .035)

5*(3600) + 3*(2400) +2*(1680)

= 28560

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If the commission is 3 then (once for first five years, once for the next three,

and once for the last two

(48,000 * .075) + (48,000 * .05) +(48,000 * .035)

=7680

Explanation: