Real Estate Math
A Kentucky property has a potential gross income of $48,000/year. Vacancy and credit loss is 8%. What is the effective gross income?
A$38,400
B$40,800
C$44,160✓ Correct
D$46,000
Explanation
Vacancy loss = $48,000 × 8% = $3,840. EGI = $48,000 − $3,840 = $44,160. To solve this, multiply the relevant values: $48,000 at 8%.. The correct answer is $44,160.. This is a common calculation on the Kentucky real estate exam.
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