Real Estate Math

A property's current NOI is $60,000 and is expected to grow by 5% per year. What will the NOI be in 2 years?

A$63,000
B$66,150✓ Correct
C$66,000
D$70,000

Explanation

Year 1 NOI: $60,000 × 1.05 = $63,000. Year 2 NOI: $63,000 × 1.05 = $66,150. To solve this, multiply the relevant values: $60,000 at 5%.. The correct answer is $66,150.. This is a common calculation on the Georgia real estate exam.

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