Real Estate Math
A Missouri rental property has potential gross income of $60,000/year with 5% vacancy. Effective gross income is:
A$3,000
B$57,000✓ Correct
C$55,000
D$63,000
Explanation
EGI = PGI x (1 - Vacancy Rate) = $60,000 x (1 - 0.05) = $60,000 x 0.95 = $57,000. To solve this, multiply the relevant values: $60,000 at 5%.. The correct answer is $57,000.. This is a common calculation on the Missouri real estate exam.
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