What is the income generated from a property valued at $495,000 with a rental rate of 10%?

What is the income generated from a property valued at $495,000 with a rental rate of 10%?

• A. $49,500
• B. $45,000
• C. $50,000
• D. $52,500

Answer: (A)

To determine the income generated from a property valued at $495,000 with a rental rate of 10%, you need to perform a simple calculation. The income can be calculated by multiplying the property value by the rental rate (expressed as a decimal). First, convert the rental rate of 10% into a decimal, which is 0.10. Then perform the calculation: Income = Property Value × Rental Rate Income = $495,000 × 0.10 Income = $49,500 This means that the income generated from the property is indeed $49,500, making it the correct answer. The method of converting the percentage to a decimal and multiplying it by the total property value is a standard approach in real estate calculations for estimating potential rental income.

To determine the income generated from a property valued at $495,000 with a rental rate of 10%, you need to perform a simple calculation. The income can be calculated by multiplying the property value by the rental rate (expressed as a decimal).

First, convert the rental rate of 10% into a decimal, which is 0.10. Then perform the calculation:

Income = Property Value × Rental Rate

Income = $495,000 × 0.10

Income = $49,500

This means that the income generated from the property is indeed $49,500, making it the correct answer. The method of converting the percentage to a decimal and multiplying it by the total property value is a standard approach in real estate calculations for estimating potential rental income.