Real Estate Math
Using the correct calculation from the previous question: A 12-unit building at $950/month per unit has a 5% vacancy rate. What is the effective gross income?
A$129,960✓ Correct
B$136,800
C$6,840
D$143,640
Explanation
PGI = 12 × $950 × 12 = $136,800. Vacancy = 5% × $136,800 = $6,840. EGI = $136,800 − $6,840 = $129,960.
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