Real Estate Math
A commercial property in Juneau sells at a 9% cap rate. The annual NOI is $81,000. What is the sale price?
A$729,000
B$810,000
C$900,000✓ Correct
D$980,000
Explanation
Sale price = NOI ÷ Cap rate = $81,000 ÷ 0.09 = $900,000. To solve this, multiply the relevant values: $81,000 at 9%.. The correct answer is $900,000.. This is a common calculation on the Alaska real estate exam.
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