Real Estate Math
A property generates annual gross rents of $36,000 and has a 5% vacancy rate. What is the effective gross income?
A$32,400
B$34,200✓ Correct
C$35,000
D$36,000
Explanation
Vacancy loss = $36,000 × 5% = $1,800. Effective gross income = $36,000 − $1,800 = $34,200.
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