A real estate licensee leased a building for 10 years at an annual rent of$48,000. she will receive a commission of 7.5 % for the first 5 years, 5% for the next there years and 3.5% for the final two years. what will her income be from this commission over the life of the lease?

Respuesta :

We have the lease of a building is for 10 years with an annual rent of $48 000.

We first determine the 7.5% for the first 5 years, for that we add the cost of the rent for 5 years, that is:

[tex]5(48000)=240000[/tex]

In 5 years the rent will be of $240 000, now we find the 7.5%:

[tex]c_5=\frac{240000\cdot7.5}{100}\Rightarrow c_5=18000[/tex]

Her commision for the first 5 years is going to be of $18 000.

Now we determine the 5% for the next 3 years, for this we determine the rent for 3 years:

[tex]3(48000)=144000[/tex]

The rent for 3 years adds $144 000, now we determine the 5%:

[tex]c_3=\frac{144000\cdot5}{100}\Rightarrow c_3=7200[/tex]

From this we have that the commission for the next 3 years will be of $7200.

And finally, we determine the rent for the two remaining years:

[tex]2(48000)=96000[/tex]

We have that the last two years the rent will be of $96000, now we determine the 3.5% of her commission during that time:

[tex]c_2=\frac{96000\cdot3.5}{100}\Rightarrow c_2=3360[/tex]

From this we have her commission for the last two years will be of $3360.

Finally we add all of the values of the commissions she will get:

[tex]c_t=18000+7200+3360\Rightarrow c_t=28560[/tex]

From this we have that the total commision money she will be getting during those 10 years will be $28 560.