Real Estate Math
A building's potential gross income is $200,000. With 8% vacancy and 1% credit loss, what is the effective gross income?
A$178,000
B$182,000✓ Correct
C$184,000
D$180,000
Explanation
Vacancy and credit loss = 9% total. EGI = $200,000 × (1 − 9%) = $200,000 × 0.91 = $182,000. To solve this, multiply the relevant values: $200,000 at 8%.. The correct answer is $182,000.. This is a common calculation on the Georgia real estate exam.
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