Real Estate Math
A Nashville office building has a potential gross income of $480,000. Vacancy and credit loss is estimated at 7%. What is the effective gross income?
A$446,400✓ Correct
B$513,600
C$480,000
D$436,400
Explanation
EGI = PGI × (1 − Vacancy rate) = $480,000 × 0.93 = $446,400. To solve this, multiply the relevant values: $480,000 at 7%.. The correct answer is $446,400.. This is a common calculation on the Tennessee real estate exam.
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