Real Estate Math
A property generates $5,200/month gross income. If operating expenses are 38% of gross income, what is the monthly NOI?
A$1,976
B$3,224✓ Correct
C$2,600
D$3,076
Explanation
Monthly operating expenses: $5,200 × 0.38 = $1,976. Monthly NOI: $5,200 − $1,976 = $3,224. To solve this, multiply the relevant values: $5,200 at 38%.. The correct answer is $3,224.. This is a common calculation on the Rhode Island real estate exam.
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