Real Estate Math
A New York property has an annual gross income of $60,000 and the operating expense ratio is 35%. What is the annual Net Operating Income?
A$21,000
B$39,000✓ Correct
C$45,000
D$60,000
Explanation
Operating expenses = $60,000 x 0.35 = $21,000. NOI = $60,000 - $21,000 = $39,000. To solve this, multiply the relevant values: $60,000 at 35%.. The correct answer is $39,000.. This is a common calculation on the New York real estate exam.
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