Real Estate Math
A property generates annual gross rent of $96,000. If comparable properties sell at a GRM of 12 (annual), what is the estimated property value?
A$800,000
B$1,152,000✓ Correct
C$960,000
D$8,000
Explanation
Value = Annual Gross Rent × Annual GRM = $96,000 × 12 = $1,152,000.
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