Real Estate Math
A property in South Bend, Indiana produces an annual NOI of $48,000. A buyer wants a 9% return on investment. What is the maximum price the buyer should pay?
A$432,000
B$480,000
C$533,333✓ Correct
D$576,000
Explanation
Maximum price = NOI ÷ Required rate of return = $48,000 ÷ 0.09 = $533,333.
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