Question

If Skylar's property has a net income of $5,480, and returns 8 percent annually on the investment, then what is her property's value?

Answer 1

the Skylar's property value will be equal to $68,500.

Explanation:

given,

the net income of $5,480

return of 8 percent annually on the investment

property value is the value upon which the buyer and the seller come on the same page means they agree for the price.

property value = net operating income / capital rate

=
`(5480)/(0.08)`

= $68,500

hence, the Skylar's property value will be equal to $68,500.