Real Estate Math

A 10-unit apartment building has monthly rent of $900 per unit. At 5% vacancy, what is the annual EGI?

A$102,600✓ Correct
B$108,000
C$95,600
D$100,000

Explanation

Annual PGI = 10 × $900 × 12 = $108,000. Vacancy loss = $108,000 × 5% = $5,400.

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