An income property has a gross annual income of $14,250 and monthly expenses of $300. It has been valued at $147,000. What is the capitalization rate?

0.072

Explanation:

From the question, we are given the information that income property has a gross annual income of $14,250 and monthly expenses of $300 and that it has been valued at $147,000.

The capitalization rate will be calculated as:

= [$14, 250 - ($300 X 12)]/$147,000

= ($14,250 - $3,600)/$147,000

= $10650/$147,000

= 0.072

= 7.2%

answer; someone must cover the cost associated with the provision of scarce goods in both sectors;

answer decisions made by individual households and firms;