Real Estate Math
A property's net operating income is $45,000. The property is valued at $562,500. What is the cap rate?
A7%
B8%✓ Correct
C9%
D10%
Explanation
Cap rate = NOI ÷ Value = $45,000 ÷ $562,500 = 0.08 = 8%. Using the values given ($45,000, $562,500), apply the appropriate formula.. The correct answer is 8%.. This is a common calculation on the Georgia real estate exam.
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