The Garcias' house has a fair market value of $186,000 and rents for $1,200 per month. The house next door belongs to Yolanda and rents for $1,300 per month. Assuming the same rate of return, what is the fair market value of Yolanda's property?
A. $201,500
B. $187,300
C. $171,692
D. $155,000
Answer: A. $201,500
Explanation: First, determine the monthly multiplier for the Garcias' house by dividing the market value by the monthly rent ($186,000 ÷ $1,200 = 155). Then multiply the multiplier by the rent Yolanda collects for her neighboring property (155 × $1,300 = $201,500) to determine the value of her property.
Business
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