Real Estate Math
A property's net operating income is $62,400. If the capitalization rate is 7.8%, what is the estimated value?
A$750,000
B$800,000✓ Correct
C$812,000
D$820,000
Explanation
Value = NOI ÷ Cap Rate = $62,400 ÷ 0.078 = $800,000.
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