Real Estate Math
A duplex generates $3,200/month per unit. Annual vacancy loss is estimated at 5%. What is the Effective Gross Income (EGI) for the year?
A$76,800
B$72,960✓ Correct
C$80,640
D$68,200
Explanation
Potential Gross Income (PGI) = 2 units × $3,200/month × 12 months = $76,800/year. Vacancy loss = $76,800 × 5% = $3,840. EGI = $76,800 – $3,840 = $72,960.
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