Real Estate Math

An Indiana property's effective gross income is $110,000 and the operating expense ratio is 38%. What is the NOI?

A$56,900
B$62,900
C$68,200✓ Correct
D$72,600

Explanation

Operating expenses = 38% × $110,000 = $41,800. NOI = $110,000 − $41,800 = $68,200.

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