Real Estate Math
A North Dakota property has an annual NOI of $72,000 and sold at a cap rate of 8%. What was the sale price?
A$800,000
B$900,000✓ Correct
C$1,000,000
D$1,100,000
Explanation
Sale price = NOI / Cap rate = $72,000 / 0.08 = $900,000.
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