Computing in the Business World

Question

Suppose you are opening a 1,000 square foot baseball card store in a shopping center. You have signed a lease that requires you to pay a monthly rent of $1.75 per square foot, plus 5% of your gross annual sales. What is the total amount of rent you will pay in one year if you have sales of $85,000?

First calculate your rent.

Then calculate the tax on your sales (5% of your sales).

Then add these two figures together.

Answer 1

6,000

Answer 2

1,000*1.75= $1,759

0.05*85,000= 4250

4250+1,750=

6,000