Real Estate Math
A Kentucky commercial property has a cap rate of 7% and was purchased at $850,000. What is the NOI?
A$49,000
B$59,500✓ Correct
C$70,000
D$85,000
Explanation
NOI = Value × Cap Rate = $850,000 × 7% = $59,500. To solve this, multiply the relevant values: $850,000 at 7%..
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