Real Estate Math
A Wisconsin property has annual expenses of $14,400 and EGI of $52,000. What is the operating expense ratio?
A24%
B26%
C28%✓ Correct
D30%
Explanation
Operating Expense Ratio = Expenses / EGI = $14,400 / $52,000 = 0.2769 ≈ 28%. Using the values given ($14,400, $52,000), apply the appropriate formula.. The correct answer is 28%.. This is a common calculation on the Wisconsin real estate exam.
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