Real Estate Math
A North Dakota apartment building with 8 units rents each unit for $950/month. Annual vacancy is 5%. What is the effective gross income (EGI)?
A$86,640✓ Correct
B$91,200
C$85,800
D$90,000
Explanation
Annual gross rent = 8 × $950 × 12 = $91,200. Vacancy loss = $91,200 × 5% = $4,560.
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