Real Estate Math
A Washington property has an effective gross income of $210,000 and an expense ratio of 40%. What is the NOI?
A$84,000
B$116,000
C$126,000✓ Correct
D$168,000
Explanation
NOI = EGI × (1 − Expense Ratio) = $210,000 × (1 − 0.40) = $210,000 × 0.60 = $126,000. To solve this, multiply the relevant values: $210,000 at 40%.. The correct answer is $126,000.. This is a common calculation on the Washington real estate exam.
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