Real Estate Math
A Mississippi property's annual NOI is $14,000 and it sells at a 7% cap rate. What is the sale price?
A$175,000
B$200,000✓ Correct
C$210,000
D$225,000
Explanation
Value = NOI ÷ Cap Rate = $14,000 ÷ 0.07 = $200,000. To solve this, multiply the relevant values: $14,000 at 7%.. The correct answer is $200,000.. This is a common calculation on the Mississippi real estate exam.
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