Real Estate Math
A property generates gross monthly rents of $4,500. The investor values it using a monthly GRM of 120. What is the indicated value?
A$480,000
B$510,000
C$540,000✓ Correct
D$580,000
Explanation
Value = Monthly GRM × Monthly Rent = 120 × $4,500 = $540,000. Using the values given ($4,500), apply the appropriate formula.. The correct answer is $540,000.. This is a common calculation on the Idaho real estate exam.
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