Real Estate Math
A property has a GRM of 12 and monthly rent of $3,500. What is the estimated value?
A$42,000
B$504,000✓ Correct
C$420,000
D$252,000
Explanation
Annual rent = $3,500 × 12 = $42,000. Value = GRM × Annual Rent = 12 × $42,000 = $504,000. (If GRM is based on monthly rent: 12 × $3,500 × 12 = same result.)
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