ABC property management manages an office building with $60,000 annual leases. Their agreement with the owners is that they will be paid 7 % the first year , 5 % the 2nd and 3rd years, and 3 % for the next four of their seven year agreement. What will be the total management fee?

15% of $60,000

Explanation:

For first year, the percentage was 7% of $60,000

For the second year and third year 5% of $60000, which can be divided into two (2.5%/ yr)

For the next 4 years, will be 3% of $60,000.

In summary, its a 7 year agreement ,totaling the percentage to 15%,.(7%(1 year) + 5%(2 years)+( 3%( 4years)). I.e the total management fee for the 7 years is 15% of $60000 = $9000

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