Real Estate Math
A property has a gross income multiplier (GIM) of 8 and annual gross income of $85,000. What is the indicated value?
A$612,000
B$680,000✓ Correct
C$720,000
D$765,000
Explanation
Value = GIM × Annual Gross Income = 8 × $85,000 = $680,000. Using the values given ($85,000), apply the appropriate formula.. The correct answer is $680,000.. This is a common calculation on the Idaho real estate exam.
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