Real Estate Math
A South Dakota apartment building has 10 units renting for $750/month each. The vacancy rate is 5%. What is the effective gross income?
A$84,000
B$85,500✓ Correct
C$90,000
D$80,750
Explanation
Potential Gross Income: 10 × $750 × 12 = $90,000. Vacancy Loss: $90,000 × 5% = $4,500.
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