Real Estate Math
A Massachusetts property has PGI of $144,000. Vacancy is 4%, and other income is $6,000. What is the effective gross income?
A$144,240✓ Correct
B$150,240
C$138,240
D$155,760
Explanation
EGI = PGI × (1 − vacancy) + other income = $144,000 × 0.96 + $6,000 = $138,240 + $6,000 = $144,240.96 = $138,240 + $6,000 = $144,240. Answer A and B are very close. EGI = $144,240. Answer A is correct.
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