Real Estate Math
A Texas commercial property has a potential gross income (PGI) of $180,000. Vacancy and collection loss is 8%. What is the effective gross income (EGI)?
A$165,600✓ Correct
B$172,400
C$166,400
D$170,000
Explanation
Vacancy loss = $180,000 × 0.08 = $14,400. EGI = $180,000 − $14,400 = $165,600.
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