Real Estate Math
A Hawaii property has annual gross rents of $84,000 and a GRM of 14. What is the indicated value?
AA. $600,000
BB. $1,176,000✓ Correct
CC. $840,000
DD. $1,200,000
Explanation
Value = Annual Gross Rent × GRM = $84,000 × 14 = $1,176,000. Using the values given ($84,000), apply the appropriate formula.. The correct answer is B. $1,176,000.. This is a common calculation on the Hawaii real estate exam.
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