In the calculation for capitalization, what is 8.9% of 1 million?

To determine 8.9% of 1 million, you can perform a straightforward calculation. Start by converting the percentage into a decimal. This is done by dividing 8.9 by 100, which gives you 0.089. Next, multiply this decimal by 1 million.

The math looks like this:

0.089 × 1,000,000 = 89,000.

Therefore, the correct result of 8.9% of 1 million is $89,000. This value represents the portion of the total amount that corresponds to 8.9% and is critical in property management and investment analysis, as it helps stakeholders understand the financial implications of capital investments or returns on investment.

The option provided does not reflect this correct calculation and therefore does not align with the concept of percentage calculations in financial contexts. Understanding the fundamentals of computing percentages is essential, especially in fields like property management, where such calculations impact decision-making and financial assessments.