Real Estate Math
A Colorado property has a 5% vacancy rate and potential gross income of $96,000. What is the effective gross income?
AA. $91,200✓ Correct
BB. $4,800
CC. $96,000
DD. $86,400
Explanation
Effective Gross Income = Potential Gross Income × (1 - Vacancy Rate) = $96,000 × (1 - 0.05) = $96,000 × 0.
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