Real Estate Math
A South Dakota property has a monthly effective gross income of $7,500 and annual operating expenses of $36,000. What is the annual NOI?
A$50,000
B$54,000✓ Correct
C$45,900
D$90,000
Explanation
Annual effective gross income: $7,500 × 12 = $90,000. NOI = $90,000 - $36,000 = $54,000. Using the values given ($7,500, $36,000), apply the appropriate formula.. The correct answer is $54,000.. This is a common calculation on the South Dakota real estate exam.
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