Real Estate Math
An investor wants a 10% return on a $500,000 investment. What annual net operating income is needed?
A$40,000
B$45,000
C$50,000✓ Correct
D$55,000
Explanation
Required NOI = Investment × Return Rate = $500,000 × 10% = $50,000. To solve this, multiply the relevant values: $500,000 at 10%.. The correct answer is $50,000.. This is a common calculation on the Alabama real estate exam.
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