Real Estate Math
A property rents for $1,200/month. If the gross rent multiplier is 10, what is the estimated value?
A$12,000
B$120,000
C$144,000✓ Correct
D$14,400
Explanation
Annual rent = $1,200 × 12 = $14,400. Value = Annual rent × GRM = $14,400 × 10 = $144,000.
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