Question

A broker has a four-year contract to manage a rental unit for an investor. He is to receive 50% of the first month's rent and 5% of each remaining month. The rent is $600/month. How much will the broker earn over the term of the contract?

Answer 1

Explanation:

600 X .50 = 300.00 1st month

600 X .05 = 30.00 47 months

30 X 47 = 1,410

1,410 + 300 = 1,710 (final answer)

Answer 2

$1710

Explanation:

The broker has a 4 year contract .

Rent =$600/month

He’s to receive 50% of the first month’s rent.

50% / 100% x $600

0.5 x $600

$300 , so his first month rent is $300.

He’s to receive 5% of each remaining month

5% /100% x $600

0.05 x $600 =$30

There are 12 months in a year and 48 months in four years .

If he earns $300 in the first month and $30 in the rest month, amount he would have earned at the end of his contract is = $300 + ($30 x 47 months)

= $300 + $1410

= $1710