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The process of estimating the present worth of a property based on its anticipated income
A. derivation
B. annualized data
C. capitalization
D. reconciliation
C. capitalization (this multiple choice question has been scrambled)

A number that, when multiplied by the income, gives an indicator of value
A. gross rent multiplier (GRM)
B. ratios
C. rental income
D. multiplier
D. multiplier (this multiple choice question has been scrambled)

A figure which, when multiplied by the monthly rental income, will equal the property's market value
A. gross rent multiplier (GRM)
B. potential gross income (PGI)
C. effective gross income (EGI)
D. effective gross income multiplier (EGIM)
A. gross rent multiplier (GRM) (this multiple choice question has been scrambled)

Income (calculated annually or monthly) received from rental units before any expenses are deducted
A. gross income multiplier (GIM)
B. effective gross income (EGI)
C. effective gross income multiplier (EGIM)
D. gross rent
D. gross rent (this multiple choice question has been scrambled)

A figure which, when multiplied by the annual gross income, will equal the property's market value
A. potential gross income multiplier (PGIM)
B. effective gross income multiplier (EGIM)
C. gross rent multiplier (GRM)
D. gross income multiplier (GIM)
D. gross income multiplier (GIM) (this multiple choice question has been scrambled)

The ratio between the value or sales price of a property and its potential gross income
A. gross income multiplier (GIM)
B. potential gross income multiplier (PGIM)
C. eccective gross income (EGI)
D. potential gross income (PGI)
B. potential gross income multiplier (PGIM) (this multiple choice question has been scrambled)

The amount of income a property could potentially generate assuming 100% occupancy at market rental rates
A. potential gross income multiplier (PGIM)
B. gross income multiplier (GIM)
C. effective gross income (EGI)
D. potential gross income (PGI)
D. potential gross income (PGI) (this multiple choice question has been scrambled)

The ratio between the effective gross income and the value of the property
A. effective gross income multiplier (EGIM)
B. gross rent multiplier (GRM)
C. effect gross income (EGI)
D. gross income multiplier (GIM)
A. effective gross income multiplier (EGIM) (this multiple choice question has been scrambled)

The amount of income remaining after vacancy and credit losses are deducted from gross income
A. potential gross income multiplier (PGIM)
B. gross income multiplier (GIM)
C. effective gross income (EGI)
D. gross rent multiplier (GRM)
C. effective gross income (EGI) (this multiple choice question has been scrambled)

The process of estimating the present worth of a property based on its anticipated income is called
A. amortization
B. capitalization
C. appreciation
D. depreciation
B. capitalization (this multiple choice question has been scrambled)

Which statement is incorrect regarding GRM and GIM
A. GIM is used on small incomeproducting properties
B. the GRM and the GIM are identical
C. the GRM is based on income derived from rent
D. both use a number that, when multiplied by the income, gives an estimate of value
B. the GRM and the GIM are identical (this multiple choice question has been scrambled)

How is the GRM calculated?
A. multiply the value by gross rent
B. divide PGI by the value
C. divide the value by gross rent
D. multiply PGIM by the value
C. divide the value by gross rent (this multiple choice question has been scrambled)

Subject's prop value $400,000
PGI $80,000
Vacancy and collection losses $(5%)?
PGIM (mmultiplier) = Value / PGI
EGIM = Value / EGI
1. From the information above, what is the vacancy and collection loss?
a. $3,000
b. $4,000
c. $4,3000
d. $3,750
2. What is the EGI?
a. $40,000
b. $56,000
c. $76,000
d. $84,000
3. How is the PGIM calculated?
a. divide the PGI by the value
b. divide the PGI by the EGI
c. divide the value by the PEGI
d. add the value to the vacancy factor
4. What ist he PGIM int he previous example?
a. 4.5
b. 5.0
c. 5.3
d. 4.75
5. What ist he EGIM in the previous example?
a. 5.26
b. 5.56
c. 4.76
d. 6.0
 1. b. $4,000
 2. c. $76,000
 3. c. divide the value by the PEGI
 4. b. 5.0
 5. a. 5.26

Comp Annual EGI Sales Price EGIM
Comp 1 $50,000 $600,000 ?
Comp 2 $ ? $575,000 10
Comp 3 $56,410 ? 9.75
Comp 4 $45,000 $495,000 11
Comp 5 $60,526 $575,000 ?
1. What is the EGIM for Comp1?
a. 8
b. 9
c. 12
d. 13
2. What is the effective annual income for Comp 2?
a. $57,500
b. $60,000
c. $55,000
d. $47,500
3. What is the sale price for Comp3?
a. $499,000
b. $500,000
c. $600,000
d. $550,000
4. What is the monthly income for Comp 4?
a. $2,000
b. $3,750
c. $4,275
d. $5,250
5. What is the monthly EGIM for comparable 4?
a. .92
b. 120
c. 1.92
d. 132
6. What is the monthly EGIM for comp 5?
a. 9.5
b. 11.25
c. 114
d. 144
7. What is the mean (average) EGIM for all the comps above?
a. 11
b. 12
c. 9.55
d. 10.45
 1. c. 12
 2. a. $57,500
 3. d. $550,000
 4. b. $3,750
 5. d. 132
 6. c. 114
 7. d. 10.45

