Real Estate Math
A Colorado property has an NOI of $55,000 and sold at a 7.5% cap rate. What was the purchase price?
A$412,500
B$550,000
C$733,333✓ Correct
D$825,000
Explanation
Purchase price = NOI ÷ Cap rate = $55,000 ÷ 0.075 = $733,333.
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