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A rental home has monthly gross income of $1,100. A suitable gross income multiplier derived from market data is 14.7. What estimated sale price (to the nearest $1,000) is indicated?

1 Answer

3 votes

Answer:

$212,000 round off

Step-by-step explanation:

We know that

Gross income multiplier = Estimated Sale price ÷ Gross income

where,

Gross income multiplier = 14.7

And, the annual gross income would be

= Monthly gross income × total number of months in a year

= $1,100 × 12 months

= $14,400

So, the estimated sale price would be

14.7 = Estimated Sale price ÷ $14,400

So, the Estimated Sale price would be

= $14,400 × 14.7

= $211,680

= $212,000 round off

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