Calculate the value from the following information:

Net income $21726

Net capitalisation (cap) rate 2.8%

Show your answer to two decimal places. There is no need to put in any formatting symbols such a $ any or commas

Work out the net rate, for the following details for property A:

• Sale Price: $1,500,000
• Land Value: $1,000,000
• Other site improvements: $20,000
• Projected interest rate cost for owner: $15,000
• Chattels: $5,000
• Floor area: 125 m²

Select one:

a.

$3,560 m²

b.

$3,680 m²

c.

$3,480 m²

d.

None of the other answers are correct

e.

$3,800m²