6

1. Use the following table to answer the next three questions:

   	Annual Net Income	Annual Gross Income	Selling Price
   Property 1	82,000	122,000	1,250,600
   Property 2	75,000	111,500	1,145,300
   Property 3	145,000	175,000	1,433,600
   Subject	60,000	108,000	?

   If properties are residential properties, what is the Gross Income Multiplier for Property 2?

   A.	12.1
   B.	10.27
   C.	15.27
   D.	9.7

4 points

QUESTION 7

1. What is the Cap Rate of Property 3?

   A.	7.50
   B.	10.21
   C.	9.89
   D.	8.19

4 points

QUESTION 8

1. Using the cap rate of Property 3, what selling price should be set for the Subject property?

   A.	$1,092,012
   B.	987,098
   C.	875,003
   D.	$606,673