Real Estate Math

A building has a gross annual income of $96,000, vacancy loss of 5%, and operating expenses of $28,000. What is the net operating income (NOI)?

A$63,200✓ Correct
B$68,000
C$91,200
D$64,200

Explanation

Effective Gross Income = $96,000 × 0.95 = $91,200.

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