Real Estate Math

A property earns $3,600 per month in gross rent. Operating expenses are 42% of gross income. What is the annual NOI?

A$17,280
B$25,056✓ Correct
C$43,200
D$50,400

Explanation

Annual gross income: $3,600 × 12 = $43,200. Operating expenses: $43,200 × 0.42 = $18,144. NOI: $43,200 − $18,144 = $25,056.

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