Certified Residential Appraiser Practice Exam

Disable ads (and more) with a membership for a one time $4.99 payment

Study for the Certified Residential Appraiser Exam. Use flashcards and multiple choice questions with hints and explanations. Ensure you're ready for your certification!

Practice this question and more.

Using the formula R x V = I, if the rate is 7% and the value is $100,000, what is the income?

$5,000
$7,000
$10,000
$14,000

The correct answer is: $7,000

In the formula R x V = I, 'R' represents the rate, 'V' stands for the value, and 'I' is the income generated from that value. To find the income, you simply multiply the rate by the value. In this scenario, the rate is 7%, which can be expressed as 0.07 in decimal form, and the value is $100,000. Thus, the calculation becomes: Income = Rate x Value Income = 0.07 x $100,000 Income = $7,000 This result indicates that when applying a 7% rate to a value of $100,000, the income earned would indeed be $7,000.