Suppose you are opening a 1,000-square-foot baseball card store. Your lease calls for a flat monthly rent of $1.75 per square foot plus 5 percent of your gross annual sales. What is the total rent you will pay in one year if you have sales of $85,000?

Answer 1

1,000 * 1.75 = $1,750

0.05 * 85,000 = ?

Add the two products together.

Answer 2

$72,000

Answer 3

72,000