Real Estate Math
A Rhode Island commercial property has annual gross income of $120,000, vacancy loss of 5%, and operating expenses of $45,000. What is the net operating income (NOI)?
A$69,000✓ Correct
B$72,000
C$75,000
D$114,000
Explanation
Effective gross income = $120,000 x (1 - 0.05) = $114,000.
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