If a property's expected annual net income is $89,100 and its current market value is $1,060,000, the property's capitalization rate is:

Question

Quizplus · Accepted Answer

To find the capitalization rate, divide the expected annual net income ($89,100) by the current market value ($1,060,000) and multiply by 100 to get a percentage: ($89,100 / $1,060,000) x 100 = 8.4%. Therefore, the correct answer is B - 8.4%.

If a Property's Expected Annual Net Income Is $89,100 and Its