Real Estate Math
A property has an annual NOI of $36,000 and a cap rate of 7.5%. What is its estimated value?
A$270,000
B$360,000
C$480,000✓ Correct
D$540,000
Explanation
Value = NOI divided by Cap Rate = $36,000 divided by 0.075 = $480,000. To solve this, multiply the relevant values: $36,000 at 7.5%.. The correct answer is $480,000.. This is a common calculation on the North Carolina real estate exam.
Related North Carolina Real Estate Math Questions
- A broker earns a 6% commission on a $410,000 sale and splits 50/50 with their firm. The broker then pays their supervising broker 20% of the broker's share. How much does the broker keep?
- A property has potential gross income of $72,000, a 4% vacancy rate, and operating expenses of $22,000. The NOI is:
- A buyer's loan balance is $180,000 at 7% annual interest. What is the first month's interest payment?
- An investor buys a duplex for $280,000 with 25% down. What is the loan amount?
- An investor purchases a property for $500,000 with 20% down. What is the investor's equity at purchase?
- A NC buyer offers $328,500 on a home listed at $339,900. This offer is what percentage below list price?
- A rectangular commercial building measures 80 feet by 120 feet. What is the building area in square feet?
- A property in NC has a tax value of $225,000. The county tax rate is $0.62 per $100 of assessed value. What is the annual property tax?
Practice More North Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →