Real Estate Math
A Massachusetts property with $150,000 in annual NOI sold at an 8% cap rate. What was the purchase price?
A$1,200,000
B$1,500,000
C$1,875,000✓ Correct
D$2,000,000
Explanation
Purchase price = NOI / Cap rate = $150,000 / 0.08 = $1,875,000.
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