Real Estate Math
A duplex generates $1,800/month from each unit. Annual operating expenses total $18,000. What is the annual NOI?
A$18,000
B$25,200✓ Correct
C$43,200
D$21,420
Explanation
Annual gross income: $1,800 × 2 units × 12 months = $43,200. NOI = $43,200 − $18,000 = $25,200. Using the values given ($1,800, $18,000), apply the appropriate formula.. The correct answer is $25,200.. This is a common calculation on the Rhode Island real estate exam.
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