Real Estate Math
A Massachusetts tenant pays $2,100/month in rent. The landlord's expenses are 45% of gross rent. What is the landlord's annual NOI from this unit?
A$13,860✓ Correct
B$11,340
C$25,200
D$27,720
Explanation
Annual gross rent = $2,100 × 12 = $25,200. NOI = $25,200 × (1 − 0.45) = $25,200 × 0.55 = $13,860. To solve this, multiply the relevant values: $2,100 at 45%.. The correct answer is $13,860.. This is a common calculation on the Massachusetts real estate exam.
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