f a property sold for $450,000 and rents at 1500 per month, what should a property renting at 1800 sell for?

Question

f a property sold for $450,000 and rents at 1500 per month, what should a property renting at 1800 sell for?

Answer 1

This looks like a simple proportion.

 

Let x be the selling price of the property. We are assuming that the ratio of the price to the cost per month is the same for both properties, since there is no other information to the contrary.

 

The equation is:

 

450000/1500 = x/1800.

 

This may be solved by cross-multiplying:

 

450000 x 1800 = 1500x

 

x = 450000 x 1800 / 1500 = 540000.

 

The $1800 a month property should sell for $540,000.