Real Estate Math
A West Virginia investor wants to earn at least a 12% return on equity. They invest $75,000 down. What minimum annual NOI is required to achieve this return (ignoring debt service)?
A$6,250
B$9,000✓ Correct
C$7,500
D$8,000
Explanation
Minimum NOI = $75,000 x 0.12 = $9,000. To solve this, multiply the relevant values: $75,000 at 12%.. The correct answer is $9,000.. This is a common calculation on the West Virginia real estate exam.
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