Real Estate Math
A Kentucky commercial property has a NOI of $45,000 and is purchased at a 9% cap rate. What is the estimated value?
A$405,000
B$450,000
C$500,000✓ Correct
D$540,000
Explanation
Value = NOI ÷ Cap Rate = $45,000 ÷ 0.09 = $500,000.
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