Question
A retail store you own requires the tenant to pay percentage rent of 5% over their break point of $1 million per year. Their sales
A retail store you own requires the tenant to pay percentage rent of 5% over their break point of $1 million per year. Their sales have been $1.35 million per year and you have been investing the percentage rent in a 6% savings account each year. How much will you have after 7 years of investments?
| Sales | $1,350,000 |
| Break Point | $1,000,000 |
| Overage | $350,000 |
| Percentage | 5% |
| Additional Rent | $17,500 |
Step by Step Solution
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Concepts In Federal Taxation
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
19th Edition
978-0324379556, 324379552, 978-1111579876
