Real Estate Math
A property generates $36,000 annual gross rent. The vacancy and credit loss is 5%. What is the effective gross income (EGI)?
A$1,800
B$34,200✓ Correct
C$37,800
D$31,500
Explanation
Vacancy loss = $36,000 × 5% = $1,800. EGI = $36,000 - $1,800 = $34,200. To solve this, multiply the relevant values: $36,000 at 5%.. The correct answer is $34,200.. This is a common calculation on the Arizona real estate exam.
Related Arizona Real Estate Math Questions
- The capitalization rate for a property is found by dividing:
- An Arizona homeowner wants to net $280,000 after paying a 6% commission. What is the minimum sale price needed?
- A 1-acre lot sells for $87,120. What is the price per square foot? (1 acre = 43,560 sq ft)
- A commercial property has an NOI of $85,000. If it sells at a 7% cap rate, what is the sale price?
- A property is assessed at 10% of its full cash value of $500,000. If the tax rate is $12 per $100 of assessed value, what is the annual tax?
- A 6% commission is split 50/50 between the listing and selling brokers. The selling broker splits 70% with their salesperson. If the sale price is $460,000, how much does the selling salesperson receive?
- A rectangular lot measures 150 feet wide and 200 feet deep. A buyer pays $12 per square foot. What is the purchase price?
- A commission of $18,000 is split 55/45 between the listing and selling sides. The listing agent then splits 60/40 with their broker. How much does the listing agent receive?
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →