Real Estate Math

A commercial property has an annual effective gross income of $150,000 and operating expenses of $60,000. What is the net operating income (NOI)?

A$75,000
B$90,000✓ Correct
C$95,000
D$105,000

Explanation

NOI = Effective Gross Income - Operating Expenses = $150,000 - $60,000 = $90,000. Using the values given ($150,000, $60,000), apply the appropriate formula..

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