Real Estate Math
An Indiana property has a potential annual gross income of $144,000. With a 5% vacancy rate, what is the effective gross income?
A$133,000
B$136,800✓ Correct
C$139,200
D$144,000
Explanation
EGI = $144,000 × (1 − 0.05) = $144,000 × 0.95 = $136,800. To solve this, multiply the relevant values: $144,000 at 5%.. The correct answer is $136,800.. This is a common calculation on the Indiana real estate exam.
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