Real Estate Math
A Vermont property's gross annual income is $48,000. After a 10% vacancy allowance and $16,800 in operating expenses, what is the net operating income?
A$26,400✓ Correct
B$26,000
C$31,200
D$43,200
Explanation
EGI = $48,000 × (1 − 0.10) = $43,200. NOI = EGI − Operating Expenses = $43,200 − $16,800 = $26,400. To solve this, multiply the relevant values: $48,000 and $16,800 at 10%.. The correct answer is $26,400.. This is a common calculation on the Vermont real estate exam.
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