Real Estate Math
A South Dakota property's potential gross income is $84,000/year with a 6% vacancy rate. What is the effective gross income?
A$78,960✓ Correct
B$79,000
C$80,000
D$84,000
Explanation
Vacancy loss = $84,000 × 6% = $5,040. EGI = $84,000 − $5,040 = $78,960. To solve this, multiply the relevant values: $84,000 at 6%.. The correct answer is $78,960.. This is a common calculation on the South Dakota real estate exam.
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