Real Estate Math
A North Dakota commercial property generates $220,000 annual NOI. The cap rate is 7%. What is the value?
A$2,857,143
B$3,142,857✓ Correct
C$3,285,714
D$3,500,000
Explanation
Value = NOI / Cap rate = $220,000 / 0.07 = $3,142,857. To solve this, multiply the relevant values: $220,000 at 7%.. The correct answer is $3,142,857.. This is a common calculation on the North Dakota real estate exam.
Related North Dakota Real Estate Math Questions
- A North Dakota commercial property sold for $1,200,000. The broker charges a 4% commission. How much is the commission?
- A buyer in Grand Forks puts $15,000 down on a $150,000 property. What is the loan-to-value ratio?
- A property sold for $185,000. The seller paid a 6% commission and $2,000 in other closing costs. What were the seller's total costs?
- A home sold for $240,000. The listing broker and buyer's broker split the 6% commission equally. How much did each broker receive?
- A North Dakota homeowner refinances their $260,000 mortgage at a lower rate. The lender charges 2 points. How much are the points in dollars?
- A North Dakota homeowner has owned their primary residence for 3 years and is selling it. The gain is $75,000. What is the federal capital gains tax exclusion available to a single homeowner?
- An investor purchases North Dakota farmland for $480,000 and sells it two years later for $552,000. What is the percentage gain?
- A North Dakota lender assesses a 1.5-point origination fee on a $280,000 mortgage. How much is this fee?
Practice More North Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Dakota Quiz →