Real Estate Math
A property generates a monthly gross income of $3,500 and has a vacancy and collection loss rate of 5%. Annual operating expenses are $14,400. What is the annual net operating income (NOI)?
A$23,700
B$27,390
C$25,500✓ Correct
D$28,500
Explanation
Annual gross income = $3,500 × 12 = $42,000. Less vacancy (5%): $42,000 × 0.
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