Real Estate Math
A property's annual NOI is $48,000 and it sold at an 8% cap rate. What was the sale price?
A$384,000
B$600,000✓ Correct
C$480,000
D$3,840,000
Explanation
Value = NOI ÷ Cap Rate = $48,000 ÷ 0.08 = $600,000.
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