Question

An owner of a six-family apartment complex pays the property manager an annual salary equal to 12% of the property's annual gross income. If the annual gross income is $ 140,000, the annual expenses are $65,000 and the capitalization rate is 10%, what is the property manager's annual salary?

A. $8,400
B. $9,800
C. $11,200
D. $12,600

Answer 1

The property manager's annual salary is $16,800.

Step-by-step explanation:

To calculate the property manager's annual salary, we need to find 12% of the property's annual gross income. The annual gross income is given as $140,000, so we can find the annual salary by multiplying $140,000 by 12% (or 0.12).

Annual salary = $140,000 * 0.12 = $16,800.

Therefore, the property manager's annual salary is $16,800.