Real Estate Math
A Pennsylvania investor wants a 12% return on their $150,000 investment. What annual NOI is required to meet this return target?
A$12,000
B$18,000✓ Correct
C$15,000
D$16,000
Explanation
Required NOI = Investment × Target Return = $150,000 × 12% = $18,000. If the investment generates $18,000 NOI annually, the investor achieves exactly 12% return.
Related Pennsylvania Real Estate Math Questions
- A buyer makes a $35,000 down payment on a $350,000 home. What is the LTV ratio?
- A Pennsylvania apartment building has 12 units renting at $1,200 per month, a 5% vacancy rate, and operating expenses equal to 40% of effective gross income. What is the annual NOI?
- A Pennsylvania seller nets $285,000 after paying a 5% broker commission and $8,000 in closing costs. What was the selling price?
- A salesperson's annual income from commissions is $95,000. If their average commission is $7,500 per transaction, how many transactions did they complete?
- A Pennsylvania 30-year mortgage for $250,000 at 6.75% requires a monthly payment of approximately $1,621. What is the total interest paid over the life of the loan?
- A 6% commission on a $450,000 sale is split 50/50 between listing and cooperating brokers. The listing broker then splits 60/40 (broker/agent) with their salesperson. What does the listing salesperson earn?
- A buyer takes out a $240,000 mortgage at 6% annual interest. What is the first month's interest payment?
- A property is assessed at $195,000 with a county millage of 15 mills and a school district millage of 28 mills. What are the total annual taxes?
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →