Real Estate Math
A property has a gross annual income of $120,000, a vacancy rate of 5%, and operating expenses of $40,000. What is the net operating income (NOI)?
A$74,000✓ Correct
B$80,000
C$86,000
D$114,000
Explanation
Effective Gross Income = $120,000 × (1 - 0.05) = $114,000.
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