Question

Sydney Blackwell manages an office building with leases of $60,000 per year. Her management agreement is for 7 years, with fees as follows: 7% the first year; 5% the second and third years; and 3 % the remaining years. What will be Sydney's total management fee?

Answer 1

total management fee is $16200

Explanation:

given data

leases = $60000 per year

time = 7 year

fees 1st year = 7%

fees 2nd and 3rd year = 5%

fees remaining year = 3%

to find out

total management fee

solution

we find here commission for each here

for 1st year = 7% of $60000 = $4200 ............1

for 2nd and 3rd year = 5% of $60000 = $3000 ............2

for remaining year = 3% of $60000 = $1800 ................3

and that is 4 year so fees = 1800 × 4 = $7200 ................4

now add all these to get total

total fees = 4200 + 3000 + 1800 + 7200

total fees = 16200

so total management fee is $16200