Real Estate Math
A Mississippi property sold at an 8% cap rate. If the sale price was $500,000, the NOI was:
A$40,000✓ Correct
B$50,000
C$45,000
D$60,000
Explanation
NOI = Value × Cap Rate = $500,000 × 8% = $40,000. To solve this, multiply the relevant values: $500,000, at 8%.. The correct answer is $40,000.. This is a common calculation on the Mississippi real estate exam.
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