Real Estate Math
An Iowa investor wants a 10% return on a $450,000 investment. What must the annual NOI be?
A$40,000
B$42,500
C$45,000✓ Correct
D$47,500
Explanation
Required NOI = Investment × Return = $450,000 × 10% = $45,000. To solve this, multiply the relevant values: $450,000 at 10%.. The correct answer is $45,000.. This is a common calculation on the Iowa real estate exam.
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