Real Estate Math
A Louisiana commercial property has an effective gross income of $95,000 and operating expenses of $38,000. What is the operating expense ratio?
A38.0%
B40.0%✓ Correct
C42.0%
D44.0%
Explanation
Operating Expense Ratio = Operating Expenses ÷ Effective Gross Income = $38,000 ÷ $95,000 = 0.40 = 40.0%.
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