Real Estate Math

A Hawaii property generates monthly gross rents of $5,500 and has a 6% vacancy rate. What is the annual effective gross income?

A$61,380
B$62,040✓ Correct
C$66,000
D$68,200

Explanation

Annual gross = $5,500 × 12 = $66,000. Vacancy loss = $66,000 × 0.

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