Answer: The options are given below:
A. $420,000
B. $360,000
C. $180,000
D. $192,000
The correct option is B. $360,000
Explanation:
First, we will find the Gross Monthly Rent Multiplier thus:
Divide sales price of the apartment by the total monthly rent
= $420,000 / $2,800 = 150.
Then multiply the total monthly rent of the building Olivia wants to purchase by the Gross Monthly Rent Multiplier to find the value thus:
$2,400 x 150 = $360,000.
Olivia would be willing to pay $360,000 for the building.