29. A property manager collects rent on 6 rental units for an owner. Each unit rents for $750 a month. The property manager charges the owner 10% of gross rents for the management fee, plus $275. What will the owner receive this month?
Answer: C
The owner will receive $3,775 this month.
To determine the amount the owner will receive, we first calculate the total rent collected from the six units, which is $750 multiplied by 6. From this total, we subtract the property manager's fee, which includes both a percentage of the gross rents and a flat fee.
A) $1,700
This option is incorrect. If the total rent collected was incorrectly calculated or the fees were misapplied, the result could yield this number. However, the actual calculation shows a total rent much higher than $1,700.
B) $1,975
This option is also incorrect. Similar to option A, it suggests a miscalculation in either the total rent or the deductions for the management fee. The total rent collected is significantly above $1,975.
C) $3,775
This is the correct option. The total rent from the six units is $4,500 ($750 x 6). The management fee is 10% of $4,500, which is $450, plus the flat fee of $275, resulting in total fees of $725. Subtracting this from the total rent ($4,500 - $725) gives the owner $3,775.
D) $2,425
This option is incorrect. It suggests a significant underestimation of the total rent collected or an erroneous calculation of the fees deducted. The actual amount received by the owner is much higher than $2,425.
Conclusion
The correct answer is $3,775, as it accurately reflects the total rent collected minus the management fees. All other options fail because they miscalculate the total rent or the management fees, leading to incorrect figures for the amount the owner receives. The calculation clearly shows that $3,775 is the definitive correct outcome based on the provided figures.