Real Estate Math
A New Mexico investor wants a 9% return on a $540,000 investment. What minimum annual NOI is required?
A$40,000
B$48,600✓ Correct
C$54,000
D$60,000
Explanation
Required NOI = Investment × Desired Return = $540,000 × 0.09 = $48,600 annual NOI needed to achieve a 9% cap rate.
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