Real Estate Math
A Pennsylvania investor purchases a commercial property at a 6.5% cap rate for $1.2 million. What is the annual NOI?
A$78,000✓ Correct
B$65,000
C$92,308
D$84,000
Explanation
NOI = Value × Cap rate = $1,200,000 × 6.5% = $1,200,000 × 0.
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