What is the value if the income is $7,000 and the rate is 7%?

To determine the value based on the given income and rate, you can apply the formula used in the income approach to valuation, which is:

Value = Income / Rate

In this scenario, the income is $7,000, and the rate is 7%, or 0.07 when expressed as a decimal. Plugging these values into the formula:

Value = $7,000 / 0.07

Calculating this gives:

Value = $100,000

Thus, the value derived from an income of $7,000 at a rate of 7% is indeed $100,000. This approach is fundamental in real estate appraisal, as it allows appraisers to calculate the worth of properties based on their income-generating potential, reflecting a direct relationship between income, rate, and value.