Real Estate Math
A property has a net operating income (NOI) of $36,000 per year. If the cap rate is 6%, what is the property's value?
A$216,000
B$600,000✓ Correct
C$360,000
D$2,160,000
Explanation
Value = NOI ÷ Cap Rate = $36,000 ÷ 0.06 = $600,000.
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