Real Estate Math
A Florida property with an NOI of $54,000 and a cap rate of 9% is valued at:
A$486,000
B$600,000
C$594,000✓ Correct
D$540,000
Explanation
Value = NOI ÷ Cap Rate = $54,000 ÷ 0.09 = $600,000. To solve this, multiply the relevant values: $54,000 at 9%.. The correct answer is $594,000.. This is a common calculation on the Florida real estate exam.
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