Real Estate Math
A rental property has an annual gross income of $60,000, a vacancy and credit loss of 5%, and operating expenses of $18,000. What is the net operating income (NOI)?
A$38,000
B$39,000✓ Correct
C$42,000
D$45,000
Explanation
Effective Gross Income = $60,000 × (1 − 0.05) = $60,000 × 0.
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