Help with NOI/Cap rate math calculations?

[Jarrid Williams]

Hello BP,

I'm working on my RE education. I recently did a quiz on Cap Rates and NOI and I got stuck on two questions. Can someone possibly tell me how I can work through these questions to get the right answer.

1) If a rental investment generates $20,000 in net income in a year and then is sold at a 6.25% cap rate, then the purchase price $____?

2) If an apartment building sold for $1M dollars at a 5% cap rate, then the apartments net operating income at purchase is $ ____?