A property manager charges a tiered management fee based on gross rental income. For properties generating up to $10,000 per month, the fee is 8%. For income between $10,001 and $20,000, the fee is 7%. For income above $20,000, the fee is 6%. If a property generates $15,000 in gross rental income in a month, what is the management fee for that month?

Question: A property manager charges a tiered management fee based on gross rental income. For properties generating up to $10,000 per month, the fee is 8%. For income between $10,001 and $20,000, the fee is 7%. For income above $20,000, the fee is 6%. If a property generates $15,000 in gross rental income in a month, what is the management fee for that month?

Answer options: ✅ $1,050

• $1,200
• $900
• $1,125

Correct answer: $1,050

Explanation: Since the gross rental income is $15,000, which falls within the $10,001 to $20,000 bracket, the management fee is 7% of the gross rental income. Management Fee = $15,000 * 0.07 = $1,050.