Real Estate Math
A property has effective gross income of $120,000 and operating expenses of $48,000. The net operating income (NOI) is:
A$48,000
B$72,000✓ Correct
C$120,000
D$168,000
Explanation
NOI = Effective Gross Income minus Operating Expenses = $120,000 minus $48,000 = $72,000. Using the values given ($120,000, $48,000), apply the appropriate formula..
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