Real Estate Math
A Kentucky property has a gross rent of $54,000/year and a vacancy rate of 10%. What is the EGI?
A$43,200
B$46,800
C$48,600✓ Correct
D$54,000
Explanation
Vacancy loss = $54,000 × 10% = $5,400. EGI = $54,000 − $5,400 = $48,600. To solve this, multiply the relevant values: $54,000 at 10%.. The correct answer is $48,600.. This is a common calculation on the Kentucky real estate exam.
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