Real Estate Math
A commercial property generates gross rental income of $120,000 annually. Operating expenses total $48,000. What is the net operating income?
A$72,000✓ Correct
B$60,000
C$84,000
D$48,000
Explanation
NOI = Gross Income − Operating Expenses = $120,000 − $48,000 = $72,000. Using the values given ($120,000, $48,000), apply the appropriate formula.. The correct answer is $72,000.. This is a common calculation on the Pennsylvania real estate exam.
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