Real Estate Math
A NJ 5-unit building is subject to a fire code inspection and one unit fails. Annual rent from the failed unit is $19,200. If it takes 3 months to remediate, how much rental income is lost from that unit?
A$3,200
B$4,800✓ Correct
C$6,400
D$9,600
Explanation
Monthly rent from unit = $19,200 ÷ 12 = $1,600/month. 3 months × $1,600 = $4,800 lost. Using the values given ($19,200), apply the appropriate formula.. The correct answer is $4,800.. This is a common calculation on the New Jersey real estate exam.
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