Real Estate Math

A South Dakota property has 8 units renting at $750/month. Vacancy is 8%. What is the annual effective gross income?

A$55,200
B$62,400
C$57,408
D$66,240✓ Correct

Explanation

PGI = 8 × $750 × 12 = $72,000. Vacancy = $72,000 × 8% = $5,760.

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