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1. A property sold for $555,000. The buyer anticipated that the potential gross income (PGI) would be $93,000, the vacancy would be 5%, and expenses
1. A property sold for $555,000. The buyer anticipated that the potential gross income (PGI) would be $93,000, the vacancy would be 5%, and expenses would be 35% of the effective gross income (EGI) in the year after purchase. What is the overall capitalization rate (RO)? Round your answer to the nearest 0.5%.
a) 9.5%
b) 10.0%
c) 10.5%
d) 11.0%
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