Real Estate Math
A rental property has a monthly gross income of $4,200 and a vacancy rate of 5%. What is the effective gross income per year?
A$47,880✓ Correct
B$50,400
C$47,700
D$48,000
Explanation
Annual gross income = $4,200 × 12 = $50,400. Effective gross income = $50,400 × (1 − 0.05) = $50,400 × 0.95 = $47,880.
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