Briana's investment property nets $728 monthly with a return rate of 9.85%. What is the value of her property?

Briana's investment property nets $728 monthly with a return rate of 9.85%. What is the value of her property?

• A. $71,708
• B. $86,050
• C. $88,690
• D. $95,965

Answer: (C)

To determine the value of Briana's property based on her net monthly income and the return rate, you can use the formula for calculating property value based on net income and return rate: Property Value = Annual Income / Rate of Return First, you should convert the net monthly income to an annual figure. Since the property nets $728 monthly, the annual income would be: $728 x 12 = $8,736 Next, convert the return rate from a percentage to a decimal for calculations: 9.85% = 0.0985 Now you can apply the values to the formula: Property Value = $8,736 / 0.0985 When you perform the division, you get: Property Value = $88,690 Thus, the calculation confirms that the value of Briana's investment property is indeed $88,690. This shows a correct application of the formula for calculating property value based on net income and return rate, demonstrating a solid grasp of fundamental investment property analysis.

To determine the value of Briana's property based on her net monthly income and the return rate, you can use the formula for calculating property value based on net income and return rate:

Property Value = Annual Income / Rate of Return

First, you should convert the net monthly income to an annual figure. Since the property nets $728 monthly, the annual income would be:

$728 x 12 = $8,736

Next, convert the return rate from a percentage to a decimal for calculations:

9.85% = 0.0985

Now you can apply the values to the formula:

Property Value = $8,736 / 0.0985

When you perform the division, you get:

Property Value = $88,690

Thus, the calculation confirms that the value of Briana's investment property is indeed $88,690. This shows a correct application of the formula for calculating property value based on net income and return rate, demonstrating a solid grasp of fundamental investment property analysis.