Real Estate Math
A Maine property has an operating expense ratio (OER) of 42%. If operating expenses are $63,000, what is the effective gross income?
A$130,000
B$140,000
C$150,000✓ Correct
D$160,000
Explanation
OER = Operating Expenses ÷ EGI. EGI = $63,000 ÷ 0.42 = $150,000. To solve this, multiply the relevant values: $63,000, at 42%.. The correct answer is $150,000.. This is a common calculation on the Maine real estate exam.
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