Real Estate Math
A building has 12 units renting at $750/month each. The vacancy rate is 5%. What is the annual effective gross income?
A$102,600✓ Correct
B$108,000
C$97,200
D$90,000
Explanation
Gross potential income = 12 × $750 × 12 = $108,000. Vacancy loss = $108,000 × 5% = $5,400. EGI = $108,000 − $5,400 = $102,600.
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