Real Estate Math
What is the annual GRM for a property priced at $390,000 that rents for $2,750 per month?
A10.5
B11.8✓ Correct
C12.3
D14.2
Explanation
Annual GRM = Price ÷ Annual Rent = $390,000 ÷ ($2,750 × 12) = $390,000 ÷ $33,000 = 11.8 (rounded). Using the values given ($390,000, $2,750), apply the appropriate formula.. The correct answer is 11.8.. This is a common calculation on the Illinois real estate exam.
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