Real Estate Math
A Kansas apartment building has 8 units each renting for $900/month. Annual vacancy is 8%. What is the effective gross income (EGI)?
A$86,400
B$79,488✓ Correct
C$72,000
D$78,840
Explanation
Gross Potential Income = 8 x $900 x 12 = $86,400. Vacancy loss = $86,400 x 8% = $6,912. EGI = $86,400 - $6,912 = $79,488.
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