Real Estate Math

A Missouri commercial building has a GIM of 8 and annual gross income of $90,000. What is the estimated value?

A$720,000✓ Correct
B$900,000
C$450,000
D$360,000

Explanation

Value = GIM × Annual gross income = 8 × $90,000 = $720,000. Using the values given ($90,000), apply the appropriate formula.. The correct answer is $720,000.. This is a common calculation on the Missouri real estate exam.

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