Real Estate Math
An Arizona investor paid $400,000 for a property and wants a 9% return on investment. What annual net income is required?
A$36,000✓ Correct
B$40,000
C$44,000
D$32,000
Explanation
Required NOI = Investment × Rate of return = $400,000 × 9% = $36,000. To solve this, multiply the relevant values: $400,000 at 9%.. The correct answer is $36,000.. This is a common calculation on the Arizona real estate exam.
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