Real Estate Math
A Kansas property has potential gross income of $54,000. Vacancy loss is 5%. What is the effective gross income?
A$51,300✓ Correct
B$50,000
C$50,800
D$52,000
Explanation
EGI = $54,000 × (1 - 0.05) = $54,000 × 0.95 = $51,300. To solve this, multiply the relevant values: $54,000 at 5%.. The correct answer is $51,300.. This is a common calculation on the Kansas real estate exam.
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