Real Estate Math
A Massachusetts commercial property's operating expense ratio is 48%. If effective gross income is $250,000, what is the NOI?
A$130,000✓ Correct
B$120,000
C$48,000
D$202,000
Explanation
Operating expenses = $250,000 × 48% = $120,000. NOI = $250,000 − $120,000 = $130,000. To solve this, multiply the relevant values: $250,000, at 48%.. The correct answer is $130,000.. This is a common calculation on the Massachusetts real estate exam.
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