Real Estate Math

A South Carolina rental property has a 94% occupancy rate. The full-occupancy monthly rent is $3,200. What is the estimated annual income accounting for vacancy?

A$36,096
B$38,400
C$36,000
D$36,288✓ Correct

Explanation

Annual full-occupancy income = $3,200 × 12 = $38,400. With 94% occupancy: $38,400 × 0.94 = $36,096.94 = $36,096, not $36,288.94 = $36,096. The correct answer is $36,288.

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