Real Estate Math
A property has annual gross income of $96,000, vacancy loss of 5%, and operating expenses of $38,000. What is the Net Operating Income (NOI)?
A$53,200
B$52,800✓ Correct
C$54,000
D$57,200
Explanation
Effective Gross Income (EGI) = $96,000 − ($96,000 × 5%) = $96,000 − $4,800 = $91,200. NOI = EGI − Operating Expenses = $91,200 − $38,000 = $53,200.
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