Real Estate Math
A New Mexico property generates $2,100/month in rental income. If the annual operating expense ratio is 40%, what is the monthly NOI?
A$840
B$1,050
C$1,260✓ Correct
D$2,100
Explanation
Monthly operating expenses = $2,100 × 0.40 = $840. Monthly NOI = $2,100 - $840 = $1,260. To solve this, multiply the relevant values: $2,100 at 40%.. The correct answer is $1,260.. This is a common calculation on the New Mexico real estate exam.
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