Real Estate Math
A building has 8 units each renting for $900/month. Vacancy is 5%. What is the effective gross income (EGI) per year?
A$82,080✓ Correct
B$86,400
C$79,200
D$90,000
Explanation
Gross Potential Income = 8 × $900 × 12 = $86,400. Vacancy = $86,400 × 0.05 = $4,320. EGI = $86,400 − $4,320 = $82,080.
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