Which formula is used with the index method to find the reproduction cost?

The formula used with the index method to find the reproduction cost is based on a comparison of current economic conditions to those that existed at the time the property was constructed. By taking the present index and dividing it by the index at the time of construction, you are essentially adjusting the original cost of the property for changes in the economic environment, such as inflation or shifts in construction costs.

Utilizing this method allows appraisers to update the original cost of constructing the property to reflect what it would cost to reproduce the same structure today, thereby providing an accurate assessment of its value. The multiplicative relationship established by this formula ensures that the original costs are appropriately scaled to correspond with current market conditions.

The other formulas do not correctly apply the necessary adjustments for the index method. For instance, the formula involving "original cost x present value" fails to connect construction costs with current economic indices. Similarly, the idea of adding depreciation to the original cost does not reflect the focus on current value adjustments. Thus, option C accurately captures the process of determining reproduction cost through the index method.