Real Estate Math
If a property has a NOI of $45,000 and a cap rate of 7.5%, what is the estimated value?
A$550,000
B$600,000✓ Correct
C$650,000
D$700,000
Explanation
Value = NOI ÷ Cap Rate = $45,000 ÷ 0.075 = $600,000. To solve this, multiply the relevant values: $45,000 at 7.5%.. The correct answer is $600,000.. This is a common calculation on the Nebraska real estate exam.
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