Real Estate Math
A Pennsylvania commercial property has monthly net income of $8,500. Using a 7.5% cap rate, what is the estimated property value?
A$1,020,000
B$1,360,000✓ Correct
C$850,000
D$1,530,000
Explanation
Annual NOI = $8,500 × 12 = $102,000. Value = NOI ÷ Cap Rate = $102,000 ÷ 0.
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