Real Estate Math
An investor purchases an Alaska property for $250,000 and wants a 12% annual return on investment. The monthly net operating income must be at least:
A$2,000
B$2,500✓ Correct
C$3,000
D$3,500
Explanation
Annual required income = $250,000 × 12% = $30,000. Monthly income = $30,000 ÷ 12 = $2,500. To solve this, multiply the relevant values: $250,000 at 12%.. The correct answer is $2,500.. This is a common calculation on the Alaska real estate exam.
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