Real Estate Math
A property manager's annual operating budget shows: gross rents $128,400; vacancy at 8%; management fee 10% of EGI; other operating expenses $26,000. What is the NOI?
A$83,129
B$80,729✓ Correct
C$78,328
D$75,928
Explanation
EGI = $128,400 × (1 – 0.08) = $128,400 × 0.92 = $118,128. Management fee = $118,128 × 10% = $11,813. NOI = $118,128 – $11,813 – $26,000 = $80,315. The
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