Real Estate Math
An investor buys a Rhode Island property for $200,000 and earns $16,000 annual NOI. What is the return on investment (cap rate)?
A6%
B7%
C8%✓ Correct
D9%
Explanation
$16,000 / $200,000 = 0.08 = 8%. Using the values given ($200,000, $16,000), apply the appropriate formula.. The correct answer is 8%.. This is a common calculation on the Rhode Island real estate exam.
Related Rhode Island Real Estate Math Questions
- A property was purchased for $320,000. It appreciated 4% in year 1 and 3% in year 2. What is the value after two years?
- A Rhode Island property manager charges a 10% management fee on a property with monthly gross rents of $8,500. What is the monthly management fee?
- A Newport listing agent earns a 6% commission on a $750,000 sale. The listing broker and buyer's broker split the commission 50/50. The listing agent keeps 70% of the listing broker's share. How much does the listing agent earn?
- A Rhode Island property has a list price of $485,000. The seller accepts an offer at 95% of list price. What is the sale price?
- A Rhode Island rental property generates $3,600/month in gross rents. If the annual operating expense ratio is 45%, what is the monthly NOI?
- A Rhode Island property generates monthly gross rents of $5,000. Operating expenses including maintenance, taxes, and insurance are 40% of gross rents. What is the monthly NOI?
- A Rhode Island investor buys a vacant lot for $85,000 and sells it 3 years later for $115,000. What is the total return on investment?
- A Rhode Island condo association charges $450/month in HOA fees. Over a 12-month period, how much does each unit owner pay?
Practice More Rhode Island Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Rhode Island Quiz →