Real Estate Math
A NJ apartment building has an effective gross income of $240,000 and an operating expense ratio (OER) of 45%. What is the NOI?
A$108,000
B$132,000✓ Correct
C$120,000
D$144,000
Explanation
Operating expenses = $240,000 × 0.45 = $108,000. NOI = $240,000 – $108,000 = $132,000. To solve this, multiply the relevant values: $240,000 at 45%.. The correct answer is $132,000.. This is a common calculation on the New Jersey real estate exam.
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