Real Estate Math
A commercial property has annual gross income of $120,000, a 5% vacancy rate, and operating expenses equal to 40% of effective gross income. What is the NOI?
A$57,600
B$68,400✓ Correct
C$72,000
D$76,500
Explanation
Effective gross income = $120,000 × (1 − 0.05) = $114,000.
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