Question

A rental house has monthly gross income of $1,200. A suitable gross income multiplier derived from market data is 14.1. What estimated sale price (to the nearest $1,000) is indicated?

1.$169,000
2.$173,000
3.$203,000
4.$102,000

Answer 1

To estimate the sale price of the rental house, multiply the monthly gross income by the gross income multiplier and round the result to the nearest $1,000.

Step-by-step explanation:

To estimate the sale price of the rental house, you can multiply the monthly gross income by the gross income multiplier. In this case, the monthly gross income is $1,200 and the gross income multiplier is 14.1.

To calculate the estimated sale price:

1. Multiply $1,200 by 14.1: $1,200 * 14.1 = $16,920
2. Round the result to the nearest $1,000: $16,920 rounds to $17,000

Therefore, the estimated sale price of the rental house is $17,000 (to the nearest $1,000).