Real Estate Math
A Florida investor receives $1,800/month net rent on a property. If they want a 9% annual return, what is the maximum price they should pay?
A$200,000
B$216,000
C$240,000✓ Correct
D$180,000
Explanation
Annual net income = $1,800 × 12 = $21,600. Maximum price = $21,600 ÷ 0.09 = $240,000. To solve this, multiply the relevant values: $1,800 at 9%.. The correct answer is $240,000.. This is a common calculation on the Florida real estate exam.
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