Question

use the following table to answer this question:

if properties are residential properties, what is the gross income multiplier for property 2?

12.1
10.27
15.27
9.7

Explanation:

Identify the formula for Gross Income Multiplier

$$ \text{Gross Income Multiplier (GIM)} = \frac{\text{Selling Price}}{\text{Annual Gross Income}} $$

Extract values for Property 2

$$
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$$

Calculate the Gross Income Multiplier

$$ \text{GIM} = \frac{1,145,300}{111,500} \approx 10.2717 $$

Answer:

• (A) 12.1
• (B) 10.27 (Correct answer)
• (C) 15.27
• (D) 9.7