Real Estate Math
An Illinois commercial property has potential gross income of $120,000, a 5% vacancy allowance, and operating expenses of $38,000. What is the NOI?
A$82,000
B$76,000✓ Correct
C$114,000
D$64,600
Explanation
Step 1: Effective Gross Income = PGI × (1 - vacancy rate) = $120,000 × 0.95 = $114,000.
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