Real Estate Math
A South Dakota property had an NOI of $52,000 and sold at a cap rate of 8%. What was the sale price?
A$416,000
B$572,000
C$650,000✓ Correct
D$353,600
Explanation
Sale Price = NOI ÷ Cap Rate = $52,000 ÷ 0.08 = $650,000. To solve this, multiply the relevant values: $52,000 at 8%.. The correct answer is $650,000.. This is a common calculation on the South Dakota real estate exam.
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