Real Estate Math

A Rhode Island rental property has monthly gross rents of $4,500. If the annual vacancy rate is 8%, what is the effective gross income?

A$45,000
B$49,680✓ Correct
C$50,220
D$54,000

Explanation

Annual gross rents: $4,500 x 12 = $54,000. Effective gross income: $54,000 x (1 - 0.08) = $54,000 x 0.92 = $49,680.

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