Real Estate Math
An investor wants to earn at least a 9% return on a property with an annual NOI of $22,500. What is the maximum price they should pay?
A$225,000
B$250,000✓ Correct
C$275,000
D$300,000
Explanation
Max price = NOI ÷ Required return = $22,500 ÷ 0.09 = $250,000. To solve this, multiply the relevant values: $22,500 at 9%.. The correct answer is $250,000.. This is a common calculation on the Georgia real estate exam.
Related Georgia Real Estate Math Questions
- A property purchased for $180,000 with 25% down is financed with a $135,000 mortgage. After 5 years the balance is $128,000. What is the owner's equity if the property value is now $210,000?
- A buyer obtains a $180,000 loan with 2 discount points. How much will the buyer pay in points at closing?
- A rectangular lot is 150 feet wide and 200 feet deep. How many acres is this lot? (1 acre = 43,560 sq ft)
- A commercial property has a NOI of $80,000 and sells at a 8% cap rate. What is the value?
- A 40-acre parcel sells for $3,200 per acre. What is the total sale price?
- A Georgia seller nets $180,000 after paying a 6% commission. What was the original selling price?
- A home is listed at $350,000 and sells for 97% of list price. What is the actual sale price?
- An agent earns a 3% commission on the sale of a $475,000 home. How much commission does the agent earn?
Practice More Georgia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Georgia Quiz →