Real Estate Math
A commercial property generates a monthly gross rent of $8,500. Vacancies and credit losses run 5%. What is the annual Effective Gross Income?
A$96,900✓ Correct
B$101,100
C$97,200
D$102,000
Explanation
Annual potential gross income = $8,500 × 12 = $102,000. Vacancy loss = $102,000 × 5% = $5,100. EGI = $102,000 − $5,100 = $96,900.
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