Real Estate Math
A Maine property's operating expenses are $38,000 and the effective gross income is $95,000. The operating expense ratio is:
A38%
B40%✓ Correct
C42%
D35%
Explanation
Operating expense ratio = Operating expenses ÷ EGI = $38,000 ÷ $95,000 = 0.40 = 40%. Using the values given ($38,000, $95,000), apply the appropriate formula.. The correct answer is 40%.. This is a common calculation on the Maine real estate exam.
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