Real Estate Math
A North Dakota rental property has 8 units at $850/month each. With a 7% vacancy rate, what is the effective gross annual income?
A$75,888✓ Correct
B$79,680
C$81,600
D$85,000
Explanation
Potential gross income = 8 × $850 × 12 = $81,600. EGI = $81,600 × (1 − 7%) = $81,600 × 0.93 = $75,888.
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