Knowledge Matters Simulation – Place – Math Quiz – Flashcards
10 test answers
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You are considering leasing a store site that has 1,500 square feet. The landlord is asking for a rent of $50 per square foot, per year. How much is the rent per year? How much is the rent per month?
answer
$75,000/year, $6,250/month
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question
Your store sales average $162,000 per month. Your triple net lease has the following monthly terms: rent is 3% of sales, insurance is $210, maintenance is $100, utilities total $425, and taxes are $90. You expect next year's sales to increase 7%, but your lease terms will remain the same. Calculate next year's ANNUAL rent. Round your answer to the nearest dollar.
answer
$72,302
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question
You observe two locations. Location A has 140 passersby per hour and rents for $1,000. Location B has 230 passersby per hour and rents for $1,500. Which location has the lower rent per passerby?
answer
Location B
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question
You have the opportunity to lease space for your business with a fixed-rate lease. The property owner has proposed a five-year lease with a rent of $4,000 per month. How much is the rent per year? How much is the rent over the life of the lease?
answer
$48,000/year, $240,000 total
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question
You are leasing a space that is 40 ft wide x 30 ft long x 10 ft high. The real estate agent estimates that your heating costs will be $0.50 per cubic foot of space per year. What will your heating costs be for the year?
answer
$6,000
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question
You have a three-year fixed rate lease of $750/month due to expire next month. Your landlord is willing to renew the three-year lease with a 4% total rent increase. What is your rent over the three-year life of the new lease?
answer
$28,080
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