Real Estate Math
A West Virginia investor wants an 8% return on a $400,000 investment property. What annual net operating income is required?
A$28,000
B$32,000✓ Correct
C$36,000
D$40,000
Explanation
Required NOI = Investment × Desired return = $400,000 × 8% = $32,000. To solve this, multiply the relevant values: $400,000 at 8%.. The correct answer is $32,000.. This is a common calculation on the West Virginia real estate exam.
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