Real Estate Math

An Indiana commercial property has monthly gross income of $12,500 and monthly operating expenses of $4,800. What is the annual NOI?

A$57,600
B$92,400✓ Correct
C$150,000
D$178,200

Explanation

Monthly NOI = $12,500 − $4,800 = $7,700. Annual NOI = $7,700 × 12 = $92,400. Using the values given ($12,500, $4,800), apply the appropriate formula.. The correct answer is $92,400.. This is a common calculation on the Indiana real estate exam.

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