Real Estate Math
A property generates monthly gross rents of $4,500. Annual vacancy is 8%. Annual operating expenses are $22,000. What is the annual NOI?
A$27,820✓ Correct
B$31,600
C$32,000
D$54,000
Explanation
Annual PGI = $4,500 × 12 = $54,000. EGI = $54,000 × (1 − 8%) = $54,000 × 0.92 = $49,680. NOI = $49,680 − $22,000 = $27,680 ≈ $27,820.
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