Real Estate Math
A Louisville property generates gross annual rent of $36,000. Operating expenses are 40% of gross rent. What is the NOI?
A$14,400
B$21,600✓ Correct
C$24,000
D$28,800
Explanation
Operating expenses = $36,000 × 40% = $14,400. NOI = $36,000 − $14,400 = $21,600. To solve this, multiply the relevant values: $36,000 at 40%.. The correct answer is $21,600.. This is a common calculation on the Kentucky real estate exam.
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