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A property has a monthly net income of $1800, and an appraiser believes a 9 percent rate of return is appropriate for the property. Its value would be estimated at____________.

A. 20000
B. 21600
C. 240000
D. 2400000

Respuesta :

Answer:

estimated value =  $240000

so correct option is C. 240000

Explanation:

given data

net income = $1800

rate of return = 9%

to find out

estimated value

solution

net income annual will be  = net income ×  12 (months)

net income annual  = $1800 ×  12

net income annual  = $21,600

so estimated value will be

estimated value = [tex]\frac{net\ income\ annual}{rate}[/tex]

estimated value = [tex]\frac{21600}{0.09}[/tex]

estimated value =  $240000

so correct option is C. 240000

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