A retail tenant pays percentage rent of 4% over a natural breakpoint based upon a rental rate of $20 per square foot. The tenant leases 4,000 square feet and is estimated to generate $2,500,000 in sales for 2017. How much will the tenant pay the landlord in percentage rent in addition to the base rent? Group of answer choices $20,000 $5,000 $17,500 $25,000
A retail tenant pays percentage rent of 4% over a natural breakpoint based upon a rental rate of $20 per square foot. The tenant leases 4,000 square feet and is estimated to generate $2,500,000 in sales for 2017. How much will the tenant pay the landlord in percentage rent in addition to the base rent? Group of answer choices $20,000 $5,000 $17,500 $25,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A retail tenant pays percentage rent of 4% over a natural breakpoint based upon a rental rate of $20 per square foot. The
tenant leases 4,000 square feet and is estimated to generate $2,500,000 in sales for 2017. How much will the tenant pay
the landlord in percentage rent in addition to the base rent?
Group of answer choices
$20,000
$5,000
$17,500
$25,000
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