Real Estate Math
A Washington home's NOI is $38,400. The seller wants a price that reflects an 8% cap rate. What should the asking price be?
A$430,000
B$468,000
C$480,000✓ Correct
D$500,000
Explanation
Value = NOI ÷ Cap Rate = $38,400 ÷ 0.08 = $480,000.
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