Real Estate Math Class : Lesson 195

By
Education & Training TN LIC# 290452 (retired)

                                                           math

I leased a storeroom to a business owner on a percentage basis.
The lease calls for a monimun monthly rental of $4000 per month and 5% of the gross monthly business over $800,000.
How much rent would I receive annually from the businessman if the businessman did a gross annual business of $1,200,000 ?

Take your time. The solution os posted below the wildlife photo.

wildlife

A. $68,000

Here's how:


Subtract 800,000 from 1.2 million to see that the businessman did a gross yearly business of 400,000 over the 1.2 million.

400000
times
0.05 or 5% of the gross monthly business over 800k
=
20000 which is 5% ove the amount over 800k

4000 a month rent
times
12 months
=
48000 a year in rent
+
20000 percentage of the amount over 800k
=
68000 in annual rent

 

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