Real Estate Math
A property with an NOI of $93,600 and a cap rate of 7.8% has an estimated value of:
A$1,100,000
B$1,150,000
C$1,200,000✓ Correct
D$1,250,000
Explanation
Value = $93,600 / 0.078 = $1,200,000. To solve this, multiply the relevant values: $93,600 at 7.8%.. The correct answer is $1,200,000.. This is a common calculation on the North Carolina real estate exam.
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