Real Estate Math
A North Dakota building has 12 units, each renting for $950 per month, with a 5% vacancy rate. What is the effective gross annual income?
A$129,960✓ Correct
B$126,000
C$128,520
D$136,800
Explanation
Gross annual income = 12 × $950 × 12 = $136,800. EGI = $136,800 × (1 − 5%) = $136,800 × 0.
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