Real Estate Math
A Kansas investment property has annual gross rents of $36,000 and a 5% vacancy rate. What is the effective gross income?
A$31,200
B$34,200✓ Correct
C$36,000
D$37,800
Explanation
Vacancy loss = $36,000 × 0.05 = $1,800. EGI = $36,000 - $1,800 = $34,200. To solve this, multiply the relevant values: $36,000 at 5%.. The correct answer is $34,200.. This is a common calculation on the Kansas real estate exam.
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