Real Estate Math
A Massachusetts property with an NOI of $108,000 is valued at $1,440,000. What is the cap rate?
A7.5%✓ Correct
B8%
C6.5%
D9%
Explanation
Cap Rate = NOI ÷ Value = $108,000 ÷ $1,440,000 = 0.075 = 7.
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