Real Estate Math
A New Mexico investor wants a 9% return on a $500,000 investment. What minimum annual NOI is required?
A$40,000
B$45,000✓ Correct
C$50,000
D$55,000
Explanation
Required NOI = Investment x Desired Return = $500,000 x 9% = $500,000 x 0.09 = $45,000.
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