Real Estate Math
A property has an annual NOI of $32,400 and sells at an 8.1% cap rate. What is the sale price?
A$262,440
B$400,000✓ Correct
C$324,000
D$252,200
Explanation
Value = NOI ÷ Cap Rate = $32,400 ÷ 0.081 = $400,000. To solve this, multiply the relevant values: $32,400 at 8.1%.. The correct answer is $400,000.. This is a common calculation on the Illinois real estate exam.
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