Real Estate Math

A Louisiana commercial building generates $120,000 in annual gross income. Operating expenses are 42% of gross income. What is the NOI?

A$50,400
B$69,600✓ Correct
C$72,000
D$78,000

Explanation

Operating expenses = $120,000 × 42% = $50,400. NOI = $120,000 − $50,400 = $69,600. To solve this, multiply the relevant values: $120,000 at 42%.. The correct answer is $69,600.. This is a common calculation on the Louisiana real estate exam.

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